REFLECT THOUGHT Assignment Example | Topics and Well Written Essays - 500 words

REFLECT THOUGHT - Assignment Example The main difference in these regards is the understanding that in these regions, strength is a more valued quality than intelligence, as the majority of work is farm or manual labor. It’s clear that this difference could lead to relativism as one culture places higher value than another on intellectual forms of intelligence. Even as difference value is placed on these elements, it’s clear that the different values are different because they have specific viability in the culture, leading to support of relativism. 2. Psychological egoism claims that whatever we do, we do out of self-interest. Give an example of an act you think is not done out of self-interest, and explain how the psychological egoist might try to interpret that act as selfish. One of the major acts that are claimed to be done not out of self-interest is charity work. Everyone from celebrities to billionaires to everyday citizens has regularly involved themselves in charitable activity as a means of contributing to world culture and helping disenfranchised individuals. Even as these acts are performed out of charity, a psychological egoist may claim they are done out of self-interest. The egoist could potentially argue that in performing these acts the people are not doing it out of a selfless interest to help others, but actually as a means of making themselves feel better. Similarly, the egoist might argue that these people are participating in these charitable activities to make themselves look better in the eyes of their peers and the general public. The problem of prayer in school is a hot-button issue. In the hypothetical dilemma John wants prayer, while Mary does not. One of the potential compromises that could be reached for this situation is to allow prayer in school for those individuals that choose to pray. Still, prayer must not be an institutionally sponsored activity; for instance, teachers would not be able to institute prayer sessions. This scenario

What Is Meant By the Term Postmodernism Essay Example | Topics and Well Written Essays - 1500 words

What Is Meant By the Term Postmodernism - Essay Example The essay "What Is Meant By the Term Postmodernism" discovers postmodernism. Debates about postmodernism began in around 1979 with Jean- Franà §ois Lyotard article â€Å"The Postmodern Condition.† In this essence, the work analyzes The Simpsons. The work borrows from the perspectives Lyotard’s views about postmodernism. The Simpsons series is a vivacious television program produced by Matt Groening. The series depicts postmodernism through the sarcastic illustration of the lifestyle Simpson Family, a middle-class household in America. Simpson is a perfect indication of postmodernism. It explains the frolics of a dysfunctional family. The father figure of the family is a drunkard while the wife is a hard working person. Their ten-year-old child, Bart is an underachiever who is proud of his status. Lisa is a genius girl but feels unappreciated while the last-born is an introvert but loving. The contrasting characters in the series present the dilemmas of postmodernism fa milies. The authoritative series illustrates cultural and political concerns of a postmodern family. Notably, it shows the reversed gender roles common with postmodernism structures. Simpsons casting has a cumulative influence on culture.The reversed roles in the families usurp common traditions hence, explaining the concept of grand narratives. The Simpsons has fundamentals of a great narrative postmodernism. Watching the episodes takes the audience through an experience in which philosophy of the principal regime dominates on knowledge.

Cash Flow and Profitability of Dividend Payout

Cash Flow and Profitability of Dividend Payout CHAPTER 1: INTRODUCTION Overview The issue of dividend has been studied comprehensively in last few decades. Still it remained as one of the most debatable issue in the field of Finance. The contradictory nature and massive importance 0f dividend in finance had made it one of the most discussable topics for researchers. Researchers in the past enclosed many aspects of dividend; few among them are views about dividend, dividend payment effects on firm value, dynamics and determinants of dividend policy, and dividend movement of different markets. Lintner (1956) study the allocation of income of corporations among dividends, retained earnings and taxes by taking data from the years 1918 to 1941 as a training period and data from the years 1942 to 1951 as the testing period. Researchconcluded that the basic origin of dividend changes werenet earning and preceding year dividends. In addition, firms attempt to continue a constant stream of dividend and influence to make a regularly partial adjustment to a target payout ratio relatively hysterically changing their payout when a change in income occurs. In the short run, dividends are consistent to avoid frequent changes. This dispute is rooted back to the significant effort of Miller and Modigliani (1961), in which it was challenged in a perfect market condition dividend policy did not affect the value of firm. In contrast, Lintner (1962) and Gordon (1963) based à ¢Ã¢â€š ¬Ã…“Bird-in-handà ¢Ã¢â€š ¬? theory and argued that in the world of ambiguity and imperfect information, hig h dividend payment is linked with high firm value. In addition, Black (1976) called dividend as great puzzle which need extensive researched. Furthermore, the Brealey and Myers (2005) listed dividend as one of the top ten significantvague topic in advance corporate finance. According to Anil and Sujjata(2008) emerging consensus was that no individual factor alone can describe dividend behavior. The existing corporate theories supported that cash flow and profitability have significant impact on dividend. The aim of this study was to know the impact of cash flow and profitability on dividend payout of non financial firms in Pakistan market. This study considered free cash flow and profitability was most important for non financial firm in Pakistan market. Talat and Mirza(2010) conducted research related to ownership structure and cash flow as predictor of dividend payout policy. According to that personal ownership, cash flow delicacy, size, and leverage were negatively associated with dividend payout policy. In contrast, profitability and operating cash flow was found as determinants of cash dividend. In addition, Researcher concluded that executive ownership, personal ownership, operating cash flow, and size were important determinants of dividend while, leverage and cash flow delicacy did not contribute considerably in determining the level of corporate dividend payment. DeAngelo and DeAngelo (1990) found significant relation between cash flow and dividend changes. Problem Statement In the field of corporate finance, the dividend was considered as one of the most noteworthy issues. The main purpose to study the impact of cash flow and profitability on dividend payout of non financial firm in Pakistani market was to analyze the cash dividend behavior of developing countries firm. In addition, study was conducted to find out how strongly these two variables free cash flow and profitability have impact on the dividend payout because, profitability was most likely used as determinants of dividend payout in most of the previous researches but free cash flow was not taken too much in previous research. Furthermore, how these two variables serve as an indicator for dividend payout. Hypothesis This research study has tested the following hypothesis to fulfill the objective of the research. H1: There is significant impact of free cash flow on dividend payout. H2: There is significant impact of return on assets on dividend payout. H3: There is significant impact of return on equity on dividend payout. H4: There is significant impact of earning per share on dividend payout. H5: There is significant impact of net profit margin on dividend payout. Outline of the Study The research structured follows. Chapter one was consist on the introduction of the thesis, it is essential to review the views and theoretical background of dividend, the statement o problem, scope and objective, hypothesis. Chapter two consisted of literature review given by various authors, theories on dividend and impact of cash flow and profitability on dividend payout. Chapter three explained methodology, it consisted of explanation of the selection of the variables, the sampling and research design, the data technique and hypothesis. Chapter four represents the analysis of results after processing the data. Chapter five composed of final result, conclusion and recommendation. Chapter six consisted of references. CHAPTER 2: LITERATURE REVIEW Since 1956, dividend has always considered one of the most interested and investigated topic in world of finance.Lintner (1956) analyzed the allocation of earning of corporation among dividends, retained earnings, and taxes by taken data into consideration for years 1918 to 1941. It was found the basic determinants of dividend change are net earning and preceding year dividends. In addition, firms tried to continue a stable flow of dividend and likely made a regularly limited adjustment to a target payout ratio instead radically changing payout when earning changed. Jensen and Meckling (1976) paid attention toward agency cost hypothesis and described that dividend restricted the funds under management control, as a result putting them under strict capital market examination. Owner responsibility was reduced to deal with the quality of investment and to handle the expenditure on manager prerequisites. Marke, Langrehr, and Hexter(1998) conducted research on dividend policy determinants. Researchers had taken focus of firm, natural log of sales of firm, inside ownership for firm, no of common shareholder for firm, free cash flow for firm, sales growth of firm, and standard deviation of returns o f firm as determinants of dividend policy. Authors concluded that corporate focus has negative impact on dividend payout. While inside ownership had also negative impact, according to researcher the firms have greater inside ownership have small dividend payout. In addition, the firms with higher free cash flow have higher dividend payout and lower payout ratio of firms with higher standard deviation of returns. William and Nanda (1994) conducted research on free cash flow, shareholder value, and the unallocated profits after tax of 1936 and 1937. In this study researcher tried to explore the investor reaction toward the anticipated decrease in free cash flow presented to corporate managers. In addition, researchers suggested agency costs as partial determinants of dividend policy. To avoid the agency problem corporate have to pay higher dividend and imposed higher tax on undistributed profit so the problem of agency cost handled efficiently. The study conducted on determinants of dividend payout ratio in GhannabyAmidu and Abor (2006). In this study 20 listed firms of Ghana Stock Exchange were used as a sample which shows 76% of the total listed firm in Ghana Stock Exchange. Researchers have taken the Payout Ratio as controlled variable and explanatory variables includes risk, profitability, cash flow, corporate tax, institutional holding, sales growth, and market to book value. It was foundthat more profitable firms paid more dividends and profitability is positively related to dividend payout. In addition, cash flow and taxes are also positively related to dividend payout. Further, they also concluded there is a positive relationship between increase in liquidity and dividend payout. Results suggested negative relationship of dividend payout with growth, market to book value, risk, and institutional holding. The firms with the earning instability found hard to pay low and no dividends. Al-Malkawi (2007) worked on determinants of corporate dividend payout policy in Jordan. Researcher used a firm level panel data of all publicly traded firms on the Amman Stock Exchange for the year 1989-2000. Researcher used dividend payout as a depended variable and agency cost, Ownership, annual share turnover, market to book ratio, market capitalization of common equity, financial leverage ratio, profitability ratio, and taxes as independent variables. By using Tobit specification researcher concluded that positive relationship between size, age, and profitability with dividend payout and negative relationship between signaling device, ownership, and taxes in Jordan. Fairchild (2010) worked on Dividend policy, signaling and free cash flow: an integrated approach. Researcher has tried to examine the dividend policy by taking only two hypothesis signaling and free cash flow. In order to understand the composite environment of dividend policy, signaling game is developed in which most of the information possesses by managers than investors about the quality of the firms. The signaling hypothesis shows that asymmetric information between managers and investor, dividend work as signal regarding current performance and future prospect. The study found that high dividend has positive effect on the firm performance, in term of providing a positive signal for current performance and as will as future scenario. In addition, dividend payout reduces the free cash flow problem, which may attract the manager to invest in negative NPV project for personal interest. But if the project shows positive NPV so investment opportunities are available which lead toward the higher dividend in future. Gill, Nahum, and Rajendra (2010) worked on determinants of dividend payout ratio in United States. In this study researcher extend the Amidu and Joshua, and Anil and Kapoor finding for the American service and manufacturing firms. Researcher took same variables into account such as profitability, tax, market to book value, cash flow, and sale growth. The sample size was 266 out of 500 financial reports. According to the researcher dividend payout ratio of manufacturing firms is the function of profit margin, tax, and market to book value ratio. It was also found that result differ when the dividend payout ratio was defined as the ratio between after tax cash flow and cash dividend, not considering after tax earning of the companies. Reddy (2006), studied the dividend behavior of Indian companies, movement, and determinants and struggled to decide the behavior of the companies listed at Bombay Stock Exchange with theassist of trade off theory and signaling theory hypothesis. According to researcher analysis of dividend trend depicted that stock traded on New York Stock Exchange and Bombay Stock Exchange indicated that percentage of companies paying dividend has declined from 60.5% in 1990 to 32.1% in 2001 and there is only few companies paying dividend constantly. Beside that firms paying dividend are more profitable, large in size, and having enough growth. Indian context did not represent corporate tax and ax preference theory. Lastly the dividend change indicated signal to current and lagged earning performance rather than future earning performance. Baker, Farrelly and Edelman (1986) studied New York Stock Exchange 318 firms. According to the researchers main determinants of dividend payments were expected future earning and picture of past dividend. Gitman and Pruitt (1991) asked 1000 largest US firms financial managers and concluded present and precedent year earning were significant determinants effect dividend payment. According to Baker and Powell (2000) survey companies listed on New York Stock Exchange were industry explicit and predicted level of future income was the main factor of dividend payout Anil and Kapoor (2008) studies Indian information technology sector for determinants of dividend payout ratio. The phase for study 2000-2006 encompass both recessionary and booming phase of Indian information technology sector. Researcher concluded that beta and liquidity was discovered a notable determinant of dividend payout ratio. In addition, authors concluded that due to recession from 2003 onwards IT sector observed exponential growth, and it was anticipated linear growth in IT sector after 2006. Recently in Pakistani perspective, Ahmed and Attiya (2009) investigated sample of 320 non-financial firms listed on Karachi Stock Exchange from 2001 to2006.Researchers concluded Pakistani companies dependent more on current earning than past dividend. In addition, authors highlighted few predictors that may affect payout policies. Firstly, the finding demonstrated companies containing high profit with consistent earning can manage larger amount of free cash flow as a result to payout larger dividend. The firms having larger investment chance can easily affect and have a significant role in determinants of dividend payout policy in Pakistan. The companies paid more dividends to shareholders where inside ownership exist. Ownership structure has considered major factor in determining dividend policy in Pakistan. Beside that dividend payout was not affected pay growth of the firms and market liquidity has a significant impact on dividend payout. Furthermore, size was significant determin ants for dividend payout that means companies invest in assets relatively paying dividends to its stockholders. 2.1 Dividend irrelevance theory: Miller and Modigliani (1961) proposed that dividend policy is irrelevant to the shareholder and stockholder wealth was constant in the world of perfect market condition and any growth in the current payout is financed by literally priced stock sales. The basic assumption was that management paid 100 percent payout in every period. Other assumptions were as follow. First, market is perfect capital market that means there were no taxes on transaction cost, single buyer and seller not influenced price and everyone have free access to information. Second, investors are rational and value of securities was based on the discounted future cash flow to investor. Third, manager act as a agent of shareholders, and there was no uncertainty about the investment policy of the firm. 2.2 Bird-in-hand theory: Al-Malkawi (2007) emphasized that dividend valued differently from retained earnings (capital gains) in world of ambiguity and irregularity information. à ¢Ã¢â€š ¬Ã…“A bird in hand (dividend) is valued more than two in the bush (capital gain)à ¢Ã¢â€š ¬?. Investors always preferred dividends to retained earnings due to uncertainty of future cash flow. Although, this controversy has been extensively condemned and has not get strong empirical base, but, it was supported by Gordon and Shapiro (1956), Lintner (1962), and Walter (1963). The basic assumptions were as followed Firstly, investors have inadequate information regarding the profitability of a firm. Secondly, cash dividend was taxed at a higher rate when capital gain was realized on the sale of share. Thirdly, dividend serves as a signal of expected cash flow. 2.3 Agency cost and free cash flow theory: Ross (2008) define agency cost is the cost of the conflict of interest that exists among shareholders and management. It was happened when management act for own interest rather than shareholders interest who own the firm. This could be direct and indirect. It was in contrast to assumption of Millar and Modigliani (1961) that mangers act as an agent of shareholders. This is somewhat dubious, as the owners of the firm are different from the management. Managers are bound to carry out some activities, which could be costly to shareholders, such as undertaking unprofitable investments that would yield excessive returns to them, and unnecessarily high management compensation (Al-Malkawi, 2007). These costs are borne by shareholders; therefore, shareholders of firms with excess free cash flow would require high dividend payments instead. Agency cost may also arise between shareholders and bondholders: while shareholders require more dividends, bondholders require fewer dividends than shar eholders by putting in place a debt covenant to ensure availability of cash for their debt repayment. Easterbrook (1984) also identified two agency costs: the cost of monitoring managers and the cost of risk reluctance on the part of managers. Jensens free cash flow/overinvestment hypothesis (1988) provides a surrogate description for the positive association between the direction of the dividend change and the stock price reaction. Jensen argues that managers tend to hold cash to invest in negative NPV projects for their own utility maximization. The agency costs that result from this overinvestment decrease the value of the firm. Like the signaling hypothesis, the FCF argument suggests there should be a positive relationship is the direction of the dividend policy change and the stock price reaction. However, the FCF argument differentiates itself with respect to the level of growth opportunities faced by the firm. If a firm initiated a cash dividend, FCF arguments postulate there are fewer funds available for costly overinvestment. Likewise, if company didnt pay dividend, the strongest form of a decrease would reduce the value of the firm because there are more funds available to invest in less present value projects. The FCF hypothesis assumes larger stock price volatility for the firms who have few growth opportunities as compared to the firms with many growth opportunities. There is disagreement between different researchers on dividend policy. Allen and Rachim (1996) in Australia found no significant association between stock price volatility and divided policy. According to Gordon (1963) the stock price volatility is influenced by dividend payout. The firms who pay large dividend have minimum risks in terms of stock price value. Some of hypothetical mechanism also suggests the universal relationship of dividend yield and dividend payout ratio with stock price volatility. Jensens and Meckling (1976) developed Agency cost argument which proposed that dividend payout lower the cost of funds and increase the cash flows for the company. The company after paying cash dividends to stock holders would have less cash in hands of the managers to invest at below the cost of capital. According to Asquith and Mullin (1983), Born, Moser, and Officer (1984) and Miller and Rock (1985) dividend declaration provide information to the share holders to forecast the financial position of the company and the present firms earnings. This also depends on the source of information that either it is doubtful or not to respond on announcement of dividend. Hence, there remains disagreement till yet, the relation of dividend yield and stock price volatility and it is still unexplained and is considered as debatable in corporate CHAPTER 3: RESEARCH METHODS 3.1 Method of Data Collection Required data was collected from Karachi Stock Exchange as given by State Bank of Pakistan in publication of Balance Sheet Analysis of Joint Stock Companies Listed on the KSE (2005-2009). The period of study covered five years, 2005-09. The sample size of 100 non-financial firms was taken from all non financial firm listed at KSE. The required sample was chosen on the basis of cash dividend paid by firms at-least for two years. The sample represents major industry. 3.2 Sample Size Sample of 100 non-financial firms was collected from KSE. Sample consisted of firms which paid cash dividend for at least two years. Firms that was selected for study represented all major industries functioning in Pakistan and listed at KSE from 2005-2009. The impact of the cash flow and profitability on dividend payout was examined on selected sample of 100 non-financial firms. 3.3 Research Model Developed There were various financial factors of the non-financial firms which affected the Dividend payout of the firms. This research study investigated the impact of free cash flow and profitability on the dividend payout. 3.3.1 Dividend payout Dividend payout and dividend amount are taken as the dependent variables. Since dividend payout is the generally used alternative for dividend policy, almost every financial researcher has used payout as a proxy for corporate dividend policy (See for example Gugler, 2003; Reddy and Rath, 2005; Papadopoulos, 2007; Al-Malkawi, 2007; Ahmed Attiya, 2009). In order to calculate dividend payout was calculated as cash dividend per share divided by earning per share. 3.3.2 Earning per share According to Hafeez and Attiya (2009) high profitability with constant earnings can manage to pay for larger free cash flows as a result to pay out larger dividends. The earnings per share after tax were used as independent variable. Earning per share after tax was used because dividend has been paid after interest, taxes and after depreciation and calculated as net earnings divided by number of shares. H1: There is significant impact of earning per share on dividend payout 3.3.3 Return on Equity This variable is used in different previous studies such as: Abor (2005), Miller (2007), Al-Ajmi et al. (2009), and Ebaid (2009) etc. Some authors measured profitability or performance by three measurements such Gross profit margin (GPM), Return on Equity (ROE), and Return on Assets (ROA) and same predictors Ebaid (2009). Likely results with this variable are same as revealed by Abor (2005) and Ebaid (2009) such as: Significance and positive relationship with dividend payout. Return on Equity is considered best measure of firm profitability. Return on Equity (ROE) is one measure of how efficiently a company uses its assets to produce earnings. ROE was calculated by dividing Net Income minus preferred dividend by Share holder equity H2: There is significant impact of Return on Equity on dividend payout. 3.3.4 Free Cash flow According to Jensens (1986) free cash flow hypothesis, companies choose to use their cash resources to invest in profitable projects first; dividend is paid out of residual. From a companys point of view, cash generated from operations plays an important role in deciding the level of payout, among all three sources of cash flows i.e. operating; investing and financing, cash generated from operations is considered as most desirable source of funds for the company for distribution of dividends. Anil and Sujjata (2008) also found cash flow from operations as the most significant determinant of dividend policy in Indian IT industry. A  measure of financial performance calculated as Net income minus depreciation minus change in working capital minus change in capital expenditure. Free cash flow (FCF) represents the cash that a company is able to generate after  placing out the money required to maintain or expand its asset base.  Free  cash flow is important be cause it  allows a company to  pursue opportunities that enhance shareholder value. H3: There is a significant impact of free cash flow on dividend payout. The model developed was a linear model and its specifications are provided below: Div payout = a0 a1EPS + a2ROE + a3FCF + ц Dividend payout = Dividend per share divided by earning per share EPS = Net income divided by number of share outstanding ROE =Net income minus preferred dividend divided by common shareholder equity FCF =Net income minus Depreciation minus change in working capital minus change in Capital expenditure à Ã¢â‚¬Å¾ = error term 3.4 Statistical Technique Multiple Linear Regression Analysis (MLR) technique was used for this research study to examine the impact of the distinctive financial characteristics of the non-financial firms on their dividend payout of the selected firms; Statistical Package for the Social Sciences (SPSS) was used for the examination of the secondary data. CHAPTER 4: RESULT The sample of 100 non-financial firms from Karachi Stock Exchange was taken into consideration. This research study used multiple regression analysis (MLR). Researcher examined the behavior of non-financial firms of KSE about dividend payout. The selected technique was used to study the impact of cash flow and profitability on dividend payout. 4.1 Finding and Interpretation of the results In the beginning, the regression technique was applied on collected data by using SPSS, and there was no single variable was significant. It was clear from the result that there was the high co-linearity among the independent variables of the dividend payout and this means there was strong interrelationship present among the predictors. Return on assets and net profit margin was omitted from the data, thus, the issue of co-linearity was resolved. Now, proceeding with the analysis of the results because issue of co-linearity was addressed. The interpretation and analysis is presented in the next sections of this research study. Table 4.1: Model Summary Mod R R Sq. Adj. R Sq. 1 .289 .084 .078 Tables 4.1 depict the summary about the regression model. The R square of 8.4% showed that all the predictors of dividend payout together explained 8.4% variation in the dependent variable and the remaining variation was unexplained or hidden predictor were not included in the model. TABLE 4.2:ANOVA Model Sum of Squares df Mean Square F Sig. 1 Regression 31503.936 3 10501.312 15.236 .000a Residual 345316.428 501 689.254 Total 376820.364 504 The table 4.2 checked the significance of the linear regression model in such a way that the reliability of the data file regarding the applicability of the regression technique can be understood from the above table; however, ANOVA table was reliable test of checking the linear regression models ability to explain any variation in the dependent variable of liquidity. This was perfectly obvious from the sig value of .000 that meant that the linear regression model was highly significant for the data collected for the research study conducted. In addition, ANOVA explained that all means are not equal. In table4.3 the final model of regression included only three independent variable that were free cash flow, earning per share, and return on equity These variables were included in the model due to highly significantly describing the relation with dependent variable dividend payout. Returns on equity and free cash flow have positive impact on dividend, while earning per share has negative impact on dividend payout. 4.2 Hypothesis Assessment Summary The hypothesis of research was unique financial factors had significant impact on the non-financial firms dividend payout decision. These financial characteristics were cash flow taken as free cash flow of firms and profitability taken as earning per share and return on Equity of firms. This research tasted individual financial characteristics and concluded the result as follow. TABLE 4.4: Hypothesis Assessment Summary S.No. Hypothesis ÃŽÂ ² SIG. RESULT H1 There is significant impact of free cash flow on dividend payout. .001 .005 Accepted H2 There is significant impact of Return on equity on dividend payout. .216 000 Accepted H3 There is significant impact of Earning per Share on dividend payout. -.123 .016 Accepted H4 There is significant impact of Return on Assets on dividend payout. .340 .170 Rejected H5 There is significant impact of Net profit margin on dividend payout. -.034 .530 Rejected CHAPTER 5: DISCUSSIONS, IMLICATION, FUTURE RESEARCH AND CONCLUSION 5.1Conclusion It was concluded with support of results of this research study return on equity, earning per share, and free cash flow were significant independent variables in Pakistani market. These result were matching with the study under taken by Hafeez and Attiya (2009) in Pakistani context, Researchers concluded firms with high profitability and with stable earning can afford larger free cash flow therefore pay out larger dividends to its shareholder. In addition, Talat and Hammad (2010) examined the ownership structure and cash flow as determinants of dividend policy. Researchers concluded that companies in which high proportion of share were occupied by managers and individual were more reluctant of pay high dividends. In contrast, companies in which managerial and individual ownership is low paid less dividends. It was also concluded that companies having high operating cash flow increase companies potential to pay high dividend and it was considered cash flow sensitivity reduce the compa nies payout but still it was not determined as potential determinants of corporate payout in Pakistan. 5.2 Discussions Profitability and free cash flow could lay significant impact on dividend payout in Pakistani context. Hafeez and Attiya(2009) was also considered profitability as significant determinant of dividend payout, But study conducted by Talat and Hammad (2010) concluded operating cash flow cannot consider significant determinant of dividend payout in Pakistani market.This research considered that free cash flow and profitability measured through earning per share and returns on equity have significant impact on dividend payout of the companies. 5.3 Implication and Recommendations This research was encompasses non-financial companies listed on Karachi Stock Exchange Pakistan. The required data collected from 100 non-financial firms listed at KES for the period of 2005 t0 2009. Only firms were included in samples which were paid cash dividend for atleast two years. It is recommended that such type of study should be carried out in other countries of Asia. Further, it also recommended that other determinants except one analyzed in this study should be researched in more extensive manner so the dividend payout policy and its dynamics became clearer. 5.4 Future Research This research addressed the problems of investor, management and other researcher conductor in examining and observing the behavior of firm regarding their payout decisions. Research students who want to work further on dividend payout could be benefited by this study. In addition, all non financial firms will get benefit from this study because this research study taken all major sectors into the consideration and study clarified the impact of free cash flow and profitability on dividend payout. Cash Flow and Profitability of Dividend Payout Cash Flow and Profitability of Dividend Payout CHAPTER 1: INTRODUCTION Overview The issue of dividend has been studied comprehensively in last few decades. Still it remained as one of the most debatable issue in the field of Finance. The contradictory nature and massive importance 0f dividend in finance had made it one of the most discussable topics for researchers. Researchers in the past enclosed many aspects of dividend; few among them are views about dividend, dividend payment effects on firm value, dynamics and determinants of dividend policy, and dividend movement of different markets. Lintner (1956) study the allocation of income of corporations among dividends, retained earnings and taxes by taking data from the years 1918 to 1941 as a training period and data from the years 1942 to 1951 as the testing period. Researchconcluded that the basic origin of dividend changes werenet earning and preceding year dividends. In addition, firms attempt to continue a constant stream of dividend and influence to make a regularly partial adjustment to a target payout ratio relatively hysterically changing their payout when a change in income occurs. In the short run, dividends are consistent to avoid frequent changes. This dispute is rooted back to the significant effort of Miller and Modigliani (1961), in which it was challenged in a perfect market condition dividend policy did not affect the value of firm. In contrast, Lintner (1962) and Gordon (1963) based à ¢Ã¢â€š ¬Ã…“Bird-in-handà ¢Ã¢â€š ¬? theory and argued that in the world of ambiguity and imperfect information, hig h dividend payment is linked with high firm value. In addition, Black (1976) called dividend as great puzzle which need extensive researched. Furthermore, the Brealey and Myers (2005) listed dividend as one of the top ten significantvague topic in advance corporate finance. According to Anil and Sujjata(2008) emerging consensus was that no individual factor alone can describe dividend behavior. The existing corporate theories supported that cash flow and profitability have significant impact on dividend. The aim of this study was to know the impact of cash flow and profitability on dividend payout of non financial firms in Pakistan market. This study considered free cash flow and profitability was most important for non financial firm in Pakistan market. Talat and Mirza(2010) conducted research related to ownership structure and cash flow as predictor of dividend payout policy. According to that personal ownership, cash flow delicacy, size, and leverage were negatively associated with dividend payout policy. In contrast, profitability and operating cash flow was found as determinants of cash dividend. In addition, Researcher concluded that executive ownership, personal ownership, operating cash flow, and size were important determinants of dividend while, leverage and cash flow delicacy did not contribute considerably in determining the level of corporate dividend payment. DeAngelo and DeAngelo (1990) found significant relation between cash flow and dividend changes. Problem Statement In the field of corporate finance, the dividend was considered as one of the most noteworthy issues. The main purpose to study the impact of cash flow and profitability on dividend payout of non financial firm in Pakistani market was to analyze the cash dividend behavior of developing countries firm. In addition, study was conducted to find out how strongly these two variables free cash flow and profitability have impact on the dividend payout because, profitability was most likely used as determinants of dividend payout in most of the previous researches but free cash flow was not taken too much in previous research. Furthermore, how these two variables serve as an indicator for dividend payout. Hypothesis This research study has tested the following hypothesis to fulfill the objective of the research. H1: There is significant impact of free cash flow on dividend payout. H2: There is significant impact of return on assets on dividend payout. H3: There is significant impact of return on equity on dividend payout. H4: There is significant impact of earning per share on dividend payout. H5: There is significant impact of net profit margin on dividend payout. Outline of the Study The research structured follows. Chapter one was consist on the introduction of the thesis, it is essential to review the views and theoretical background of dividend, the statement o problem, scope and objective, hypothesis. Chapter two consisted of literature review given by various authors, theories on dividend and impact of cash flow and profitability on dividend payout. Chapter three explained methodology, it consisted of explanation of the selection of the variables, the sampling and research design, the data technique and hypothesis. Chapter four represents the analysis of results after processing the data. Chapter five composed of final result, conclusion and recommendation. Chapter six consisted of references. CHAPTER 2: LITERATURE REVIEW Since 1956, dividend has always considered one of the most interested and investigated topic in world of finance.Lintner (1956) analyzed the allocation of earning of corporation among dividends, retained earnings, and taxes by taken data into consideration for years 1918 to 1941. It was found the basic determinants of dividend change are net earning and preceding year dividends. In addition, firms tried to continue a stable flow of dividend and likely made a regularly limited adjustment to a target payout ratio instead radically changing payout when earning changed. Jensen and Meckling (1976) paid attention toward agency cost hypothesis and described that dividend restricted the funds under management control, as a result putting them under strict capital market examination. Owner responsibility was reduced to deal with the quality of investment and to handle the expenditure on manager prerequisites. Marke, Langrehr, and Hexter(1998) conducted research on dividend policy determinants. Researchers had taken focus of firm, natural log of sales of firm, inside ownership for firm, no of common shareholder for firm, free cash flow for firm, sales growth of firm, and standard deviation of returns o f firm as determinants of dividend policy. Authors concluded that corporate focus has negative impact on dividend payout. While inside ownership had also negative impact, according to researcher the firms have greater inside ownership have small dividend payout. In addition, the firms with higher free cash flow have higher dividend payout and lower payout ratio of firms with higher standard deviation of returns. William and Nanda (1994) conducted research on free cash flow, shareholder value, and the unallocated profits after tax of 1936 and 1937. In this study researcher tried to explore the investor reaction toward the anticipated decrease in free cash flow presented to corporate managers. In addition, researchers suggested agency costs as partial determinants of dividend policy. To avoid the agency problem corporate have to pay higher dividend and imposed higher tax on undistributed profit so the problem of agency cost handled efficiently. The study conducted on determinants of dividend payout ratio in GhannabyAmidu and Abor (2006). In this study 20 listed firms of Ghana Stock Exchange were used as a sample which shows 76% of the total listed firm in Ghana Stock Exchange. Researchers have taken the Payout Ratio as controlled variable and explanatory variables includes risk, profitability, cash flow, corporate tax, institutional holding, sales growth, and market to book value. It was foundthat more profitable firms paid more dividends and profitability is positively related to dividend payout. In addition, cash flow and taxes are also positively related to dividend payout. Further, they also concluded there is a positive relationship between increase in liquidity and dividend payout. Results suggested negative relationship of dividend payout with growth, market to book value, risk, and institutional holding. The firms with the earning instability found hard to pay low and no dividends. Al-Malkawi (2007) worked on determinants of corporate dividend payout policy in Jordan. Researcher used a firm level panel data of all publicly traded firms on the Amman Stock Exchange for the year 1989-2000. Researcher used dividend payout as a depended variable and agency cost, Ownership, annual share turnover, market to book ratio, market capitalization of common equity, financial leverage ratio, profitability ratio, and taxes as independent variables. By using Tobit specification researcher concluded that positive relationship between size, age, and profitability with dividend payout and negative relationship between signaling device, ownership, and taxes in Jordan. Fairchild (2010) worked on Dividend policy, signaling and free cash flow: an integrated approach. Researcher has tried to examine the dividend policy by taking only two hypothesis signaling and free cash flow. In order to understand the composite environment of dividend policy, signaling game is developed in which most of the information possesses by managers than investors about the quality of the firms. The signaling hypothesis shows that asymmetric information between managers and investor, dividend work as signal regarding current performance and future prospect. The study found that high dividend has positive effect on the firm performance, in term of providing a positive signal for current performance and as will as future scenario. In addition, dividend payout reduces the free cash flow problem, which may attract the manager to invest in negative NPV project for personal interest. But if the project shows positive NPV so investment opportunities are available which lead toward the higher dividend in future. Gill, Nahum, and Rajendra (2010) worked on determinants of dividend payout ratio in United States. In this study researcher extend the Amidu and Joshua, and Anil and Kapoor finding for the American service and manufacturing firms. Researcher took same variables into account such as profitability, tax, market to book value, cash flow, and sale growth. The sample size was 266 out of 500 financial reports. According to the researcher dividend payout ratio of manufacturing firms is the function of profit margin, tax, and market to book value ratio. It was also found that result differ when the dividend payout ratio was defined as the ratio between after tax cash flow and cash dividend, not considering after tax earning of the companies. Reddy (2006), studied the dividend behavior of Indian companies, movement, and determinants and struggled to decide the behavior of the companies listed at Bombay Stock Exchange with theassist of trade off theory and signaling theory hypothesis. According to researcher analysis of dividend trend depicted that stock traded on New York Stock Exchange and Bombay Stock Exchange indicated that percentage of companies paying dividend has declined from 60.5% in 1990 to 32.1% in 2001 and there is only few companies paying dividend constantly. Beside that firms paying dividend are more profitable, large in size, and having enough growth. Indian context did not represent corporate tax and ax preference theory. Lastly the dividend change indicated signal to current and lagged earning performance rather than future earning performance. Baker, Farrelly and Edelman (1986) studied New York Stock Exchange 318 firms. According to the researchers main determinants of dividend payments were expected future earning and picture of past dividend. Gitman and Pruitt (1991) asked 1000 largest US firms financial managers and concluded present and precedent year earning were significant determinants effect dividend payment. According to Baker and Powell (2000) survey companies listed on New York Stock Exchange were industry explicit and predicted level of future income was the main factor of dividend payout Anil and Kapoor (2008) studies Indian information technology sector for determinants of dividend payout ratio. The phase for study 2000-2006 encompass both recessionary and booming phase of Indian information technology sector. Researcher concluded that beta and liquidity was discovered a notable determinant of dividend payout ratio. In addition, authors concluded that due to recession from 2003 onwards IT sector observed exponential growth, and it was anticipated linear growth in IT sector after 2006. Recently in Pakistani perspective, Ahmed and Attiya (2009) investigated sample of 320 non-financial firms listed on Karachi Stock Exchange from 2001 to2006.Researchers concluded Pakistani companies dependent more on current earning than past dividend. In addition, authors highlighted few predictors that may affect payout policies. Firstly, the finding demonstrated companies containing high profit with consistent earning can manage larger amount of free cash flow as a result to payout larger dividend. The firms having larger investment chance can easily affect and have a significant role in determinants of dividend payout policy in Pakistan. The companies paid more dividends to shareholders where inside ownership exist. Ownership structure has considered major factor in determining dividend policy in Pakistan. Beside that dividend payout was not affected pay growth of the firms and market liquidity has a significant impact on dividend payout. Furthermore, size was significant determin ants for dividend payout that means companies invest in assets relatively paying dividends to its stockholders. 2.1 Dividend irrelevance theory: Miller and Modigliani (1961) proposed that dividend policy is irrelevant to the shareholder and stockholder wealth was constant in the world of perfect market condition and any growth in the current payout is financed by literally priced stock sales. The basic assumption was that management paid 100 percent payout in every period. Other assumptions were as follow. First, market is perfect capital market that means there were no taxes on transaction cost, single buyer and seller not influenced price and everyone have free access to information. Second, investors are rational and value of securities was based on the discounted future cash flow to investor. Third, manager act as a agent of shareholders, and there was no uncertainty about the investment policy of the firm. 2.2 Bird-in-hand theory: Al-Malkawi (2007) emphasized that dividend valued differently from retained earnings (capital gains) in world of ambiguity and irregularity information. à ¢Ã¢â€š ¬Ã…“A bird in hand (dividend) is valued more than two in the bush (capital gain)à ¢Ã¢â€š ¬?. Investors always preferred dividends to retained earnings due to uncertainty of future cash flow. Although, this controversy has been extensively condemned and has not get strong empirical base, but, it was supported by Gordon and Shapiro (1956), Lintner (1962), and Walter (1963). The basic assumptions were as followed Firstly, investors have inadequate information regarding the profitability of a firm. Secondly, cash dividend was taxed at a higher rate when capital gain was realized on the sale of share. Thirdly, dividend serves as a signal of expected cash flow. 2.3 Agency cost and free cash flow theory: Ross (2008) define agency cost is the cost of the conflict of interest that exists among shareholders and management. It was happened when management act for own interest rather than shareholders interest who own the firm. This could be direct and indirect. It was in contrast to assumption of Millar and Modigliani (1961) that mangers act as an agent of shareholders. This is somewhat dubious, as the owners of the firm are different from the management. Managers are bound to carry out some activities, which could be costly to shareholders, such as undertaking unprofitable investments that would yield excessive returns to them, and unnecessarily high management compensation (Al-Malkawi, 2007). These costs are borne by shareholders; therefore, shareholders of firms with excess free cash flow would require high dividend payments instead. Agency cost may also arise between shareholders and bondholders: while shareholders require more dividends, bondholders require fewer dividends than shar eholders by putting in place a debt covenant to ensure availability of cash for their debt repayment. Easterbrook (1984) also identified two agency costs: the cost of monitoring managers and the cost of risk reluctance on the part of managers. Jensens free cash flow/overinvestment hypothesis (1988) provides a surrogate description for the positive association between the direction of the dividend change and the stock price reaction. Jensen argues that managers tend to hold cash to invest in negative NPV projects for their own utility maximization. The agency costs that result from this overinvestment decrease the value of the firm. Like the signaling hypothesis, the FCF argument suggests there should be a positive relationship is the direction of the dividend policy change and the stock price reaction. However, the FCF argument differentiates itself with respect to the level of growth opportunities faced by the firm. If a firm initiated a cash dividend, FCF arguments postulate there are fewer funds available for costly overinvestment. Likewise, if company didnt pay dividend, the strongest form of a decrease would reduce the value of the firm because there are more funds available to invest in less present value projects. The FCF hypothesis assumes larger stock price volatility for the firms who have few growth opportunities as compared to the firms with many growth opportunities. There is disagreement between different researchers on dividend policy. Allen and Rachim (1996) in Australia found no significant association between stock price volatility and divided policy. According to Gordon (1963) the stock price volatility is influenced by dividend payout. The firms who pay large dividend have minimum risks in terms of stock price value. Some of hypothetical mechanism also suggests the universal relationship of dividend yield and dividend payout ratio with stock price volatility. Jensens and Meckling (1976) developed Agency cost argument which proposed that dividend payout lower the cost of funds and increase the cash flows for the company. The company after paying cash dividends to stock holders would have less cash in hands of the managers to invest at below the cost of capital. According to Asquith and Mullin (1983), Born, Moser, and Officer (1984) and Miller and Rock (1985) dividend declaration provide information to the share holders to forecast the financial position of the company and the present firms earnings. This also depends on the source of information that either it is doubtful or not to respond on announcement of dividend. Hence, there remains disagreement till yet, the relation of dividend yield and stock price volatility and it is still unexplained and is considered as debatable in corporate CHAPTER 3: RESEARCH METHODS 3.1 Method of Data Collection Required data was collected from Karachi Stock Exchange as given by State Bank of Pakistan in publication of Balance Sheet Analysis of Joint Stock Companies Listed on the KSE (2005-2009). The period of study covered five years, 2005-09. The sample size of 100 non-financial firms was taken from all non financial firm listed at KSE. The required sample was chosen on the basis of cash dividend paid by firms at-least for two years. The sample represents major industry. 3.2 Sample Size Sample of 100 non-financial firms was collected from KSE. Sample consisted of firms which paid cash dividend for at least two years. Firms that was selected for study represented all major industries functioning in Pakistan and listed at KSE from 2005-2009. The impact of the cash flow and profitability on dividend payout was examined on selected sample of 100 non-financial firms. 3.3 Research Model Developed There were various financial factors of the non-financial firms which affected the Dividend payout of the firms. This research study investigated the impact of free cash flow and profitability on the dividend payout. 3.3.1 Dividend payout Dividend payout and dividend amount are taken as the dependent variables. Since dividend payout is the generally used alternative for dividend policy, almost every financial researcher has used payout as a proxy for corporate dividend policy (See for example Gugler, 2003; Reddy and Rath, 2005; Papadopoulos, 2007; Al-Malkawi, 2007; Ahmed Attiya, 2009). In order to calculate dividend payout was calculated as cash dividend per share divided by earning per share. 3.3.2 Earning per share According to Hafeez and Attiya (2009) high profitability with constant earnings can manage to pay for larger free cash flows as a result to pay out larger dividends. The earnings per share after tax were used as independent variable. Earning per share after tax was used because dividend has been paid after interest, taxes and after depreciation and calculated as net earnings divided by number of shares. H1: There is significant impact of earning per share on dividend payout 3.3.3 Return on Equity This variable is used in different previous studies such as: Abor (2005), Miller (2007), Al-Ajmi et al. (2009), and Ebaid (2009) etc. Some authors measured profitability or performance by three measurements such Gross profit margin (GPM), Return on Equity (ROE), and Return on Assets (ROA) and same predictors Ebaid (2009). Likely results with this variable are same as revealed by Abor (2005) and Ebaid (2009) such as: Significance and positive relationship with dividend payout. Return on Equity is considered best measure of firm profitability. Return on Equity (ROE) is one measure of how efficiently a company uses its assets to produce earnings. ROE was calculated by dividing Net Income minus preferred dividend by Share holder equity H2: There is significant impact of Return on Equity on dividend payout. 3.3.4 Free Cash flow According to Jensens (1986) free cash flow hypothesis, companies choose to use their cash resources to invest in profitable projects first; dividend is paid out of residual. From a companys point of view, cash generated from operations plays an important role in deciding the level of payout, among all three sources of cash flows i.e. operating; investing and financing, cash generated from operations is considered as most desirable source of funds for the company for distribution of dividends. Anil and Sujjata (2008) also found cash flow from operations as the most significant determinant of dividend policy in Indian IT industry. A  measure of financial performance calculated as Net income minus depreciation minus change in working capital minus change in capital expenditure. Free cash flow (FCF) represents the cash that a company is able to generate after  placing out the money required to maintain or expand its asset base.  Free  cash flow is important be cause it  allows a company to  pursue opportunities that enhance shareholder value. H3: There is a significant impact of free cash flow on dividend payout. The model developed was a linear model and its specifications are provided below: Div payout = a0 a1EPS + a2ROE + a3FCF + ц Dividend payout = Dividend per share divided by earning per share EPS = Net income divided by number of share outstanding ROE =Net income minus preferred dividend divided by common shareholder equity FCF =Net income minus Depreciation minus change in working capital minus change in Capital expenditure à Ã¢â‚¬Å¾ = error term 3.4 Statistical Technique Multiple Linear Regression Analysis (MLR) technique was used for this research study to examine the impact of the distinctive financial characteristics of the non-financial firms on their dividend payout of the selected firms; Statistical Package for the Social Sciences (SPSS) was used for the examination of the secondary data. CHAPTER 4: RESULT The sample of 100 non-financial firms from Karachi Stock Exchange was taken into consideration. This research study used multiple regression analysis (MLR). Researcher examined the behavior of non-financial firms of KSE about dividend payout. The selected technique was used to study the impact of cash flow and profitability on dividend payout. 4.1 Finding and Interpretation of the results In the beginning, the regression technique was applied on collected data by using SPSS, and there was no single variable was significant. It was clear from the result that there was the high co-linearity among the independent variables of the dividend payout and this means there was strong interrelationship present among the predictors. Return on assets and net profit margin was omitted from the data, thus, the issue of co-linearity was resolved. Now, proceeding with the analysis of the results because issue of co-linearity was addressed. The interpretation and analysis is presented in the next sections of this research study. Table 4.1: Model Summary Mod R R Sq. Adj. R Sq. 1 .289 .084 .078 Tables 4.1 depict the summary about the regression model. The R square of 8.4% showed that all the predictors of dividend payout together explained 8.4% variation in the dependent variable and the remaining variation was unexplained or hidden predictor were not included in the model. TABLE 4.2:ANOVA Model Sum of Squares df Mean Square F Sig. 1 Regression 31503.936 3 10501.312 15.236 .000a Residual 345316.428 501 689.254 Total 376820.364 504 The table 4.2 checked the significance of the linear regression model in such a way that the reliability of the data file regarding the applicability of the regression technique can be understood from the above table; however, ANOVA table was reliable test of checking the linear regression models ability to explain any variation in the dependent variable of liquidity. This was perfectly obvious from the sig value of .000 that meant that the linear regression model was highly significant for the data collected for the research study conducted. In addition, ANOVA explained that all means are not equal. In table4.3 the final model of regression included only three independent variable that were free cash flow, earning per share, and return on equity These variables were included in the model due to highly significantly describing the relation with dependent variable dividend payout. Returns on equity and free cash flow have positive impact on dividend, while earning per share has negative impact on dividend payout. 4.2 Hypothesis Assessment Summary The hypothesis of research was unique financial factors had significant impact on the non-financial firms dividend payout decision. These financial characteristics were cash flow taken as free cash flow of firms and profitability taken as earning per share and return on Equity of firms. This research tasted individual financial characteristics and concluded the result as follow. TABLE 4.4: Hypothesis Assessment Summary S.No. Hypothesis ÃŽÂ ² SIG. RESULT H1 There is significant impact of free cash flow on dividend payout. .001 .005 Accepted H2 There is significant impact of Return on equity on dividend payout. .216 000 Accepted H3 There is significant impact of Earning per Share on dividend payout. -.123 .016 Accepted H4 There is significant impact of Return on Assets on dividend payout. .340 .170 Rejected H5 There is significant impact of Net profit margin on dividend payout. -.034 .530 Rejected CHAPTER 5: DISCUSSIONS, IMLICATION, FUTURE RESEARCH AND CONCLUSION 5.1Conclusion It was concluded with support of results of this research study return on equity, earning per share, and free cash flow were significant independent variables in Pakistani market. These result were matching with the study under taken by Hafeez and Attiya (2009) in Pakistani context, Researchers concluded firms with high profitability and with stable earning can afford larger free cash flow therefore pay out larger dividends to its shareholder. In addition, Talat and Hammad (2010) examined the ownership structure and cash flow as determinants of dividend policy. Researchers concluded that companies in which high proportion of share were occupied by managers and individual were more reluctant of pay high dividends. In contrast, companies in which managerial and individual ownership is low paid less dividends. It was also concluded that companies having high operating cash flow increase companies potential to pay high dividend and it was considered cash flow sensitivity reduce the compa nies payout but still it was not determined as potential determinants of corporate payout in Pakistan. 5.2 Discussions Profitability and free cash flow could lay significant impact on dividend payout in Pakistani context. Hafeez and Attiya(2009) was also considered profitability as significant determinant of dividend payout, But study conducted by Talat and Hammad (2010) concluded operating cash flow cannot consider significant determinant of dividend payout in Pakistani market.This research considered that free cash flow and profitability measured through earning per share and returns on equity have significant impact on dividend payout of the companies. 5.3 Implication and Recommendations This research was encompasses non-financial companies listed on Karachi Stock Exchange Pakistan. The required data collected from 100 non-financial firms listed at KES for the period of 2005 t0 2009. Only firms were included in samples which were paid cash dividend for atleast two years. It is recommended that such type of study should be carried out in other countries of Asia. Further, it also recommended that other determinants except one analyzed in this study should be researched in more extensive manner so the dividend payout policy and its dynamics became clearer. 5.4 Future Research This research addressed the problems of investor, management and other researcher conductor in examining and observing the behavior of firm regarding their payout decisions. Research students who want to work further on dividend payout could be benefited by this study. In addition, all non financial firms will get benefit from this study because this research study taken all major sectors into the consideration and study clarified the impact of free cash flow and profitability on dividend payout.

Comparing Oedipus and Hamlet :: comparison compare contrast essays

Free Essays - Oedipus vs. Hamlet as Tragic Protagonists Oedipus fits Aristotle's definition of the tragic flaw and protagonist almost flawlessly. Aristotle described the protagonist as "someone regarded as extraordinary rather than typical..."(1117). Oedipus freed Thebes from the Sphinx by solving her riddle-- something nobody else had been able to do. The priest in the first scene of Act I calls Oedipus "...our greatest power" (1121) and describes him as rated first among men. Hamlet is of noble birth but there is nothing else extraordinary about him. Unlike Oedipus, he had not saved a kingdom; he just happened to be born a prince. In tragedies the protagonists are usually of the nobility to make their falls seem greater. However, Aristotle said "What is finally important is not so much the protagonist's social stature as a greatness of character..." (1117). Protagonists, as described in our book, must also have a "determination to meet some goal or task to make them admirable"(1118). Oedipus set about to find the killer of King Laius to free Thebes from plagues. Hamlet's goal was to avenge the murder of his father. Oedipus immediately began to look for the killer, even when the evidence pointed to himself and ruined his life. Hamlet seems to put off killing Claudius. He chose not to murder him as he prays is Act III scene iii. In Act III scene i Hamlet says: " I'll observe his looks: I'll tent him to the quick: if 'a do blench, I know my course. The spirit I have seen may be a devil:"(1315) Even after the ghost tells Hamlet how he was murdered, Hamlet has the players act it out just to be sure. Obviously, there is no hard resolution for him to finish his task. Arthur Miller has said "tragic feeling is evoked in us when we are in the presence of a character who is ready to lay down his life.

Movie Task

Classical conditioning was first explored and developed by Ivan Pavlov, wherein the repeated pairings of a neutral stimulus and an unconditioned stimulus would result to a conditioned response to the neutral stimulus which now becomes the conditioned stimulus. In simpler terms, Pavlov was able to demonstrate that continuously pairing a product or brand with positive emotions or behaviors, resulted to people becoming conditioned to the brand or product as producing positive emotions or behaviors. Classical conditioning was the first learning program to be applied to a number of fields whose objective does to make people learn something new without actually needing to pay attention or analyze what they were learning. Classical conditioning was the preferred method of marketing strategies for low-risk and low-involvement products and has been quite effective in building the association between safety and Mr. Muscle, or that of a Happy Meal at McDonald’s. Concept in the movie: In the movie, classical conditioning was depicted in the distinction made from the quality of life up at San Angeles and down at the rebels lair. The movie had shown a stark contrast between the kind of life people have up at the megalopolis San Angeles and down the sewers. The affluent and safe life was depicted with the shiny buildings, the morality statute and zero violence, whereas the dark and difficult life was depicted underground in the sewers with unhealthy food, with rags for clothes and unsanitary living conditions. Evaluation of the concept in the movie: Classical conditioning refers to the process in which something is learned because it has become strongly associated with a certain emotional or physiological response. The movie made use of the classical conditioning concept by making the viewers believe that life up at San Angeles was better than life under it because of the contrasting emotional response that it evoked from the actors in the movie. The life at San Angeles was safe and boring, while under it, it was dangerous and exciting. In the concept of marketing, we could see that Dr. Cocteau was promoting the quality of life in San Angeles by making people believe that life there was safer, better and more productive than life under it to discourage people from going underground because he feels threatened by the dissenters. The emotional response of the characters in the movie who were up in San Angeles towards the underground rebels indicate the makings of classical conditioning, wherein the mere thought or presence of a rebel could evoke fear or hostility towards the rebels who did not want the kind of life offered by Cocteau. When the rebels go up at San Angeles to look for food, the citizens feel that they are being terrorized while Spartan looks at it as a means of survival because he had not been conditioned to have negative emotions for the rebels like the normal citizens do. Concept 2 Title: Brand Loyalty vs Brand Equity Concept Definition: Brand loyalty refers to the degree of attachment that a consumer has for a particular brand, while brand equity refers to the intangible value that a consumer attaches to a particular brand and how it evokes familiarity and positive emotions and perceptions. Brand equity is the general term while brand loyalty is a component of brand equity together with brand awareness, perceived quality and brand associations. The level of brand loyalty can predict the likelihood that a consumer will continue buying the brand, which can also be affected by brand awareness. Brand awareness indicates how well informed and aware the consumer is about the brand and its related products, like how many kinds of detergents does Tide have. Perceived quality refers to how consumers assess the quality of the brand, or how congruent the quality of the product is to how it has been marketed, if it says it can make stains disappear, do consumers believe it or not. Brand associations refer to the emotional and mental associations a consumer has about the product, if Tide is associated as the cleanest smelling detergent, then the mere exposure to the product would have us remember that clean smelling shirt at the wash. The stronger the brand loyalty is and awareness and association of the product and high perception of quality, the stronger the brand equity will be. Concept in the movie: Brand loyalty and brand equity was depicted in the movie with the reference of Taco Bell as the only surviving fast food after the different establishments battled it out in the franchise wars. Since San Angeles promoted safe and clean living without meat, fat, high cholesterol and the like, Taco Bell was the only fast food that survived because they offered the food that was prescribed by the leader of San Angeles and since Taco Bell was providing the same kind of food before the â€Å"big one† of 2010, then brand loyalty and equity had been strong as many people were aware of Taco Bell, and knew about its quality and that it is associated with healthy food and clean living. Evaluation of the concept in the movie: In the movie, Huxley explained that the only fast-food in the city was Taco Bell; this indicated that Taco Bell has strong brand equity. This would mean that Taco Bell has a monopoly of the fast food industry and that every franchise in the city is named Taco Bell. Surviving the franchise war gives us an idea of how the brand equity of Taco Bell gained an almost cult like status; the franchise war referred to how the fast-food industry tried to offer products that would be in keeping with the new quality of life with San Angeles, devoid of hamburgers and French fries and other sinfully unhealthy foods. Since most fast-foods rely on the usual fare of grease and salty fries, the move to prefer healthier foods left the other fast-foods cold. It was probably Taco Bell who alone kept up with the changing food habits of the people of San Angeles which s why it has come to be associated with healthy and approved foods. Likewise, Taco Bell has been able to retain the fast-food brand as a memory of the kind of fast foods in the city 20 years ago. The awareness of the brand of fast food as Taco Bell show that people still were loyal to the brand and they already have formed a strong opinion of the kind of food offered in the stores. Concept 3 Title: Cognitive dissonance theory vs Attribution theory Concept Definition: Leon Festinger said that cognitive dissonance arose from the inconsistency of an individual’s attitude to his/her behavior or actions. When a person thinks that he/she is kind but refuses to give alms to beggars, then that person experiences cognitive dissonance, the normal reaction to cognitive dissonance is to reduce the dissonance by changing one’s attitudes. On the other hand, attribution theory refers to the process in which we infer and understand our own behavior or that of other people. Heider said that attributions are made based on personal factors or situational factors in order to explain the behavior of other people. The fundamental attribution error says that observers generally overestimate the influence of personal factors when explaining the behavior of others while we tend to overestimate situational factors when we analyze our own behavior. Concept in the movie: Cognitive dissonance and attribution theory was shown in the movie through the series of exchanges between Spartan and Huxley in their pursuit of Phoenix and also in the justification made by Dr. Cocteau in his attempt at eliminating the rebel leader. In a poignant scene, Spartan complains that chasing and hitting bad people are okay but if these people are only looking for food then it is not okay. Attribution theory was depicted when Dr. Cocteau was dismayed with how his plan turned sour when Phoenix failed to follow his orders and instead went on a killing rampage in San Angeles. Evaluation of concept in the movie: Spartan was a cop of the past and he had trouble adjusting to the quality of life in the new San Angeles, he was brought to life again in order to catch an old criminal which was no match for the new San Angeles police force. This situation already hinted of cognitive dissonance, the presence of a police department who were ill equipped to catch criminals, and the curtailing of freedom of expression in order to keep peace and order in the city. The most memorable example of cognitive dissonance was when Spartan was chasing after a group of rebels who were looking for food, he thought that these people were really rebels but when he found out that they were only looking for food and was rebelling against the quality of life up in San Angeles than an arms rebellion. The dissonance arose from Spartan’s belief that he is a good cop chasing after bad guys, when he realized that he was chasing people looking for food, he felt discomfort and tension which resulted to attitude change, and here we see that Spartan tried to understand the rebels and their principles thereby reducing the dissonance. Attribution theory was depicted in Dr. Cocteau’s explanation of why Phoenix did not go through the plan to kill the rebel leader immediately. He said that Phoenix was made that way that a criminal would always be a criminal; he failed to say that the lack of police force and the flimsy security measures all contributed to Phoenix’s ease at creating mayhem in the city. Reference Schiffman, L. G. & Kanuk, L. L. (2007). Consumer Behavior, 9th ed.   Englewood Cliffs, NJ: Prentice Hall, Inc.

Music History Essay

Music, as they say, is a universal language. Unlike dialects, music can be understood by many sans, the lyrics spoken in a different country. The simple humming of a child, done in mostly minor chords, can make everyone feel a little emotional or sad. A happy song filled with trumpets, saxophones and lively guitar tabs can make people excited and get them all to dance. Music can unite people regardless of their age, gender and race, which is why it is considered a universal language. Through Those Years The history of music dates back before the 1800s, but that is only to put a legal timeline to the evolution of music. Since music is universal, it is then safe to say that it has started even in the beginning of the world. The first human beings, or the first animals, for that matter, depended on sounds that make up a structure filled with patterns that were easily remembered, which conveyed a meaning and made people do things like hunt for food, identify where the predator or the prey is, or go where they should go. Music was a sign and a symbol that represented something (Murray, 2004, p. 773). Technically, though, music before the 1800s existed already, in a more technical sense of the concept. Music was then not just a collection of different sounds. It became a study where people researched about it. During the 18th century, the book entitled History of Music was written and published by GB Martini. Its original title was Storia Della Musica. Other books followed after GB Martin’s, and among the many books that were published after the first one were De Cantu de Musica Sacra and Scriptores Ecclesiastici de Musica Sacra. The types of music being studied, during these times, were classified as sacred music (Murray, 2004, p. 773). During 1800-1950, the evolution of music can be seen and musical history was being more defined. It didn’t take too long when Johannes Wolf started to do more studies about music, specifically the type of sound that emerged during the Medieval and the Renaissance times. Musicologists depended much on the studies conducted by Johannes Wolf. Because of this, a branch of art called historical musicology was termed and developed. This branch of study became a significant part of the Baroque music. It also became an instrument to the development of music during the Medieval and the Renaissance era. In particular, the movement of original performance has a lot to do with the scholarship associated with the history of music. Musicology became a big part of the arts, and became more and more developed as time passed by. It soon became a field of study. Consequently, journals, researches, articles and new analyses are being developed to branch them out altogether, in order to produce more studies to be published. Music was being more defined as years went by, and it was spreading like fire all over the world (Murray, 2004, p. 773). Ancient Music To understand the history of music and how it changes, it is then best to use a chronology to explain the turn of events. First there was ancient music. This type of music reflects all the types of music that developed in the different parts of the globe, like Mesopotamia, Egypt, Rome, Greece, China, India and Persia. In fact, music was already popular and rich in countries like Rome, Greece and Mesopotamia. Whatever was audible to the people were characterized through basic scales and tones, and then came music. Music spread throughout history through systems, either written or oral (West, 1994, p. 13). The definition of ancient music differs from time to time because of how much music is already revolving, and is continuously revolving. Today, if one defines ancient music, he can say that it is the modern sound that still resembles whatever is folk and traditional in that country. Today, there are modern sounds that Muslims, Egyptians, Jews, Asians, Persians, and Indians produce, but still has not left behind the oldest and most basic of original ancient music (West, 1994, p. 13). Persia, for example, flute, lute and guitars were already being played. Religious rituals were not complete in Persia without music. Music was significant in the lives of the Persians, especially in their spiritual life. It was in Mesopotamia where the first traces of writing were seen. It was the same time when researchers and historians traced instructions for music. The traces were fragmentary, but the authorities were sure that there was music during this time in this place. In fact, music was in made in thirds when it comes to harmony. The scales of the musical pieces produced were even diatonic (Leichtentritt, 2007, p. 14). Up to this day, though, how the researchers can interpret the symbols in the ancient Mesopotamia is not a hundred percent clear. There are still controversies that have yet to be discussed and settled. The interpretation of the symbols remains to be vague. But one thing is sure; all the notations made on the cuneiform tablets were clearly that of the tunings and strings of a musical instrument called a lyre. It was also during this time when harps were invented and became a big part of the history of music (Leichtentritt, 2007, p. 14). In India, ancient music was also active. Indians were always enthusiastic when it comes to the type of musical instrument they were playing. Musical instruments were all around India. This can be proven by how much instruments were amassed from the Indus valley civilization. Archaeological sites can prove all these. Indians had forms of music that includes Samaveda, Rigveda and Samagana. Their music was characterized from hymns, verses and melodies. It was in religious rituals where music was used the most. Indian music had basic ingredients to make a sound â€Å"Indian. † During the first part of a song, Shadja is always established. The grama, in this case, is being defined. Grama is the Indian term for the note of the scale. Indian music also lives by the two principles of consonance, which involves Avinashi and Avilopi. Avinashi is a fundamental note that should always be present in a musical piece, and with Avilopi it means that the note should never change, and that it should always stay there in that particular music piece, according to Leichtentritt (2007, p. 14). Greek’s music has evolved through time. The Greeks have original musical notation style. They developed their own, no matter how robust it is. While it is true that the best musicians in Greece did not necessarily use their musical notations produced originally, it cannot be denied that a lot of Romans and Greeks still use of that original musical notation. Greek music was not exactly monophonic, although this was almost established with their style of music (West, 1994, p. 13). There was always more than just a note to be sounded at a similar time. Double pipes and bag pipes were mostly used. These can be proven also by the ancient drawings seen on the vases and the walls of Greece. Even the oldest Greek books had authors who were able to describe what different musical techniques were being used during these times. Double flutes were also popular in Greece (West, 1994, p. 13). Middle Eastern After the Ancient music came the Middle Eastern music. Middle Eastern music was rich in that it was characterized by different styles from different regions. When one goes to the Middle East, there are different types of music that can be seen, like â€Å"zajal, Turkish folk music, Turkish classical music, sha’abi, Sufi music, rapbesk, rnbesk. Somali music, pizmonim, Persian folk, Nubian music, mawwal, Kurdish music, Egyptian Chaabi and el-Gil, Egyptian Classical music, Berber music, Arabic Andalusian, Arabesque music, Arabic rap, Arabic pop, Algerian rai and Arabic Classical Music (Stanley, 1997, p. 126). † The Islam community displays its great influence coming from the Middle East music. In fact, as the Islam used music in their rituals, Middle Eastern music spread even more quickly. The identity of Middle Eastern music is defined from the melody which is still present today in modern Middle Eastern pop and liturgical music (Stanley, 1997, p. 126). Classical Music Music evolves all around the world. In the West, music has gone a long way from the classical compositions of great masters like Wolfgang Amadeus Mozart, Ludwig van Beethoven, Carl Philipp Emanuel Back, and Franz Schubert to the catchy modern pop songs of today. It’s kind of hard to imagine how music has evolved from those grand compositions to the contemporary quirky beats we listen to today, but that just proves how quickly music transforms according to the needs of the people (Stanley, 1997, p. 154). The Classical period in the West dates from about 1750 to 1820. Classical music refers to various styles of music with roots in the secular and liturgical European musical traditions of the 9th century. This type of music is characterized by romantic melodies using instruments like violins and flutes (Stanley, 1997, p. 154). One striking characteristic of classical music is its elegance. This elegance is achieved by the composers’ close attention to balance and proportion. For this reason, classical music never becomes obsolete. Up to now, many people around the world, whether they live in the West or not, still listen to classical music. Some people study their structures and attempt to recreate classical music using modern instruments. Others simply enjoy their relaxing melodies, which may aid them to concentrate on their tasks or even sleep better. There is even a concept called â€Å"Mozart effect†, as explained by Stanley (1997), which says that children who are exposed to the classical music of the great genius that is Mozart are able to concentrate more on their tasks, thus resulting in better performance in school. This is just one example of the newly discovered benefits of music that are surprising ordinary people and experts around the world (Stanley, 1997, p. 8). Western Music through the Years As the power of the West became stronger and reached farther into different corners of the globe, music itself has gained the imprints of Western culture. More and more people heard and recognized the merits of Western music. Countries that were once colonies of Western countries are especially influenced by Western music because the language barrier is weaker. Today, the dominant music is the world comes from the West. Classical, blues, jazz, rock, hip-hop, ballads, R n B – all of these have roots in the West. The amazing thing is that since music is universal, people of different races and cultures around the world can appreciate these Western genres of music. Western music may influence local music, but the traditional character of music never goes away. For instance, in Japan today, pop music has obvious Western overtones, but most pop hits are all sung in Japanese. J-pop, as Japanese pop is locally called, is influenced by Western music in a lot of ways, but its characteristics are still a lot different from Western pop music. The Music of the ‘40s and ‘50s The invention and mass production of radios during the 1940s and 1950s facilitated an amazing development in musical styles. In many ways, World War II has also changed the face of music dramatically as people expressed their disappointments and rebelliousness against the war through music (Melton and Weinstein, 2001, p. 17). Rock and roll has its roots in the 1940s, along with other musical genres such as country, jazz, swing, folk, and boogie woogie. In the United States, different musical styles were expressed by different races. Blacks had difficulty hitting the mainstream until the king of rock and roll, Elvis Presley, sang rock and R n B. Elvis was able to show the whites the excellent beats of rock music, which made its crossover into mainstream a lot easier. Elvis eventually became one of the biggest icons of rock and roll in the United States and around the world (Melton and Weinstein, 2001, p. 17). The Music of the ‘60s and ‘70s Music received huge social influences again during the 1960s and the 1970s because of the Vietnam war, the Cold War, and the spread of the Civil Rights movement. During this period, music clearly became a platform for various causes, including feminism, race empowerment, sexual freedom, and other liberal ideas (Frith, et. al. , 2001, p. 77). There are many musical icons that gained fame during this tumultuous period in musical history. Musicians like Joan Baez and Bob Dylan pioneered new techniques in lyrical composition. These new techniques inspired more artists such as Cat Stevens, Carole king, Elton John, and James Taylor to create their own groundbreaking chart-topping hits. The ‘60s were filled with R n B hits that were a combination of secular and gospel music. Different kinds of soul music emerged in this time, including Philly soul, Memphis soul and Motown. Popular artists such as Marvin Gaye and James Brown also found fame and fortune in the 1960s (Frith, et. al. , 2001, p. 77). Of course, music in the 1960s and 1970s cannot be discussed without mentioning the band that is probably one of the biggest influences of contemporary music: The Beatles. John Lennon, Paul McCartney, George Harrison and Ringo Starr drew huge crowds to their concerts and sold millions through their hits. The band not only became huge in England, but also in the United States and in other countries as far as the Philippines (Frith, et. al. , 2001, p. 74). One of the amazing things about The Beatles is their ability to change the musical landscape. While their early hits had rhythms and melodies that have the basics of rock and roll, their later albums explored new horizons. Their album, Sgt. Pepper’s Lonely Hearts Club Band was ranked by Rolling Stones magazine as the greatest album of all time. This recognition is due to the immense influence of this album on the musical styles of later genres of music (Frith, et. al. , 2001, p. 74). Music of the ‘80s and the ‘90s Western music continued to gain wide acceptance around the world during the 1980s. New Wave, hip-hop, punk rock, and heavy metal increased their markets and new musical stars were born. New Wave experimented with electronic sound and catchy, playful beats which people danced to. The various styles of rock music provided the youth the avenue to express their adventurousness and rebelliousness against the fast-paced modern world. During the 1990s, grunge musicians led by the band Nirvana took center stage in the music world. Their honest and rough lyrics reflecting the confusion and apathy of the youth, and their loud, distorted riffs gained millions of fans in the United States. Meanwhile, hip-hop also gained wider popularity as hip-hop stars such as Dr. Dre and Puff Daddy broke into the music scene with fresh raps and rhythms (Chambers, 2002, p. 166). The 1990s were also notable for the huge popularity of boy bands, which are boy groups that sang ballads with catchy beats and lyrics. Some of these boy bands included Backstreet Boys, NSYNC, Westlife, and A1. Boy bands became hugely popular because of their romantic songs which people can sing and dance to. Another group that is worth noting is the Spice Girls who originated from the United Kingdom. This group symbolized the power of women through their songs and videos. Interestingly, the Spice Girls were a hit for both males and females. After the Spice Girls, many other girl bands soon formed, but none of them reached their extraordinary level of popularity (Chambers, 2002, p. 166). The State of Music Today Today, contemporary music is still strongly influenced by the West. Pop, rock, hip-hop, R n B, and other genres have Western musicians leading the pack. Local music in different countries, though, are also gaining wider acceptance by fusing with the dominant music of the West or borrowing some of its elements. Music today is also crisper and clearer; thanks to the high level of technology that humans have achieved through science. Albums are released in CDs or DVDs, and they can also be downloaded on the Internet. Storage of music became a lot simpler, too. Before, you need bulky gramophone records to store music. Now, all you need is a tiny universal serial bus (USB) storage device to archive all the music you want. MP3 players have also made listening to music easier since these devices can be worn or slip inside a pocket. People can now go anywhere listening to their favorite songs. The West has no monopoly over music, though. All around the world, many people are rediscovering the beauty of their own local melodies, and they are breathing new life into them again in the form of world music. This musical style makes use of indigenous instruments and they usually are not accompanies by lyrics. Less popular genres like this are usually produced by independent producers, thus the term â€Å"indie. † Indie though, has its own market and continues to grow in popularity as people try to taste new musical types (Chambers, 2002, p. 166). The Human Experience of Music People change as music transforms as we’ve seen in our discussion of the long continuing history of music. Music is an expression of the culture that gives birth to it, and it constantly bends as various influences impinge upon it. It is an art form that never stays the same, but evolves through time. Music though doesn’t transform on its own. Historical events shape music as they shape the lives of people. The art form becomes a reflection of the hopes, dreams, and grievances of the people that create and listen to it. We can see this clearly in the rebellious attitude of the music from the ‘40s and ‘50s because of World War II, and the free spirit of the music from the ‘60s and ‘70s as it protested against the Vietnam War and the Cold War (Frith, et. al. , 2001, p. 77). In many ways, musicians deliberately voice out their protests through the songs that they sing. For example, John Lennon’s â€Å"Imagine† is a clear reaction to the dangers of the Cold War and other social inequalities at that time (Frith, et. al. , 2001, p. 77). However, music doesn’t always send clear messages all the time. In fact, most of the time, composers unconsciously express their sentiments and the sentiments of their generation through the beat of their songs, or through their melodies. Perhaps the greatest thing about music is its universality. Since everyone can appreciate good music, the art form traverses national and ethnic boundaries, bridging people together no matter where they come from. Good music will always be good music regardless of a person’s educational or cultural background. Of course, a person may need to expose himself repeatedly to a new genre to appreciate its beauty. But it’s not difficult to do that if the genre is indeed good. The universality of music is now more apparent than ever before because of the Internet. Musical influences are easier to share ever since artists living in opposite sides of the globe can listen to each other’s work. It’s not only artists though who benefit from the cyberspace, but also the listeners. Downloadable MP3 songs are all over the Internet, some of them free, others for sale for a small price. With a click of a mouse, a person online can listen to Middle Eastern music, classical music, rock and roll, hip-hop, world music, or whatever genre he wants. Music is bringing people closer and closer to each other. Time and space are quickly becoming negligible factors as people find satisfaction and comfort in just enjoying different musical styles. Old styles themselves are disappearing as traditional barriers are broken and various genres fuse together to create new ones. The result is that people are able to understand each other better through listening to different kinds of music. People are becoming more tolerant of each other’s differences as they see that they’re all just human beings enjoying music The future is bright for musicians and listeners around the world as technology allows music to cross more borders. Soon, everyone will be able to appreciate a variety of musical genres regardless of their original countries or ethnic backgrounds. As people listen to their CDs, MP3s and musical devices, they will realize that their hopes and dreams are one. They will realize that while music came from different corners of the world, it speaks of the universal desire of human beings for unity and peace. Bibliography Chambers, Stuart. (2002) Yes: An Endless Dream of ’70s, ’80s and ’90s Rock Music : an Unauthorized Interpretative History in Three Phases. General Store Publishing House. Frith, Simon, Will Straw and John Street. (2001) The Cambridge Companion to Pop and Rock. Cambridge University Press. Leichtentritt, Hugo. (2007) Music, History and Ideas. Read Books Publications. Melton, William and Randy Weinstein. (2001). The Complete Idiot’s Guide to Playing the Harmonica. Alpha Books. Murray, Christopher John. (2004) Encyclopedia of the Romantic Era, 1760-1850. Taylor & Francis Publishing, Inc. Stanley, John. (1997) Classical Music: An Introduction to Classical Music Through the Great Composers & Their Masterworks. Penguin Group USA. West, Martin Litchfield. (1994) Ancient Greek Music. Oxford University Press.

Gibsons Passion essays

Gibson's Passion essays The problem of illegal immigration is twofoldone, there is the problem that illegal immigrants take jobs away from American citizens. The second, a more recently recognized threat, is that because illegal immigrants often lay America open to terrorist threats. Approaching this problem must not simply be confined to improving airport security, border patrols and creating less permeable borders. Many high-risk immigrants penetrate the border legally, often with temporary visas. Once in the country, they find work under the table.' Thus, first and foremost individuals who give illegal immigrants employment and who provide financial sustenance for this underground economy must be prosecuted to the fullest extent of the law. Another potential solution that has been offered is introducing a national identification card. However, such a card already effectively exists, that of a driver's license that one must use to board planes. According to David Simcox, "despite a campaign by the American Association of Motor Vehicle Administrators for more uniformity, the formats, security features and databases of state licenses vary wildly. A majority does not require the Social Security number. Only a handful use biometrics, usually fingerprints. And there is a hodgepodge of mutually incompatible formulas for assigning unique numbers to drivers." (Simcox, 2002) This criticism should not be leveled simply upon driver's licenses, but upon all forms of identification for American citizens. A national identity card is less necessary than greater uniformity of all documentation, and more responsible checking for documents that exist. Consider visas, for instance. Surprisingly, even after September 11, the United States government has also failed to enforce time limits on visas of foreign-born nationals. (Camarota, 2002) If the U.S. Government ...