criminology paper - 1699 Words

Strain Theory in Relation to Crime Strain causes people to act against the law, breaking laws to attain their means. Merton’s theory on strain and anomie provides us with reasons for why the offender committed the crime break and enter. Merton’s strain theory shows us that the offender understood the norms of society but could not attain the means of it, he needed money go back to his girlfriend who was out west. Merton’s theory states that an individual who is lacking in social forms is more likely to commit crime due to stress. The offender grew up with many different types of strain, destine for failure in life when he dropped out of high school. Without a high school education he had a hard time finding a job and had a strain on†¦show more content†¦Ã¢â‚¬Å"The disparity between what lower class youth are led to want and what is actually available to them is the source of a major problem of adjustment. Adolescents who form delinquent subcultures †¦ have internalized on emphasis up on conventional goals. Faced with limitations on legitimate avenues of access to these goals, and unable to revise their aspirations downward, they experience intense frustrations; the exportation of non conformist alternatives ma be the result.† (Murphy, Robinson) 2) To reduce crime in a society using Merton’s strain theory there must be equal opportunities for everyone. With equal opportunities there will be no need to commit crimes to gain wealth, as everyone has the same opportunity to gain wealth. As today more and more people are being hired because they have a certain amount of pull with one company are they might know that person who can give a good recommendation. Basically there is a need to remove the work politics. There needs to be more social groups and meetings for people that are struggling to find jobs or those who have lower than normal incomes so crime can be prevented. Without equal opportunity one will be forced to preclude way to get means illegally. The individual had a loss of attachment with the social world, also not having any say or direct control like a boss of a company caused him to commit crime. He committed these crimes because he was in a low social class removed from society. The community did nothing t oShow MoreRelatedThe General Strain Theory Of Social Psychology1647 Words   |  7 PagesIntroduction The general strain theory has developed into among the greatest crime theories of social psychology with a fairly developed research body. General Strain Theory is thought to be a strong philosophy, and has gathered a lot of experimental confirmation, and has additionally extended its essential degree by offering clarifications of wonders outside of criminal conduct. There are diverse negative relationships with strain or stress that result in negative emotions along with encouragingRead MoreA Critical Comparison Of Marxist Theory And Merton’S Strain1530 Words   |  7 Pages  A Critical Comparison of Marxist Theory and Merton’s Strain Theory of Deviance. Introduction: This particular work will consist of a critical theoretical review and a comparative analysis on two criminological theories. For the comparison I have chosen Marx’s theory of crime and Merton’s strain theory of deviance. My critical comparison analysis will emphasise the central concepts and arguments within both theories and how each theory explains crime. The analysis will then explore modern dayRead MoreGeneral Strain Theory And Its Effect On Human Behavior990 Words   |  4 Pagesof his theory. Noxious events avoidance impacts the ability to maintain or come up with relationships, resulting in alternative reactions. An adverse environment perception will result in emotions that are strongly negative that motivate a person to engage in crime. Being involved in crime is sporadic according to Agnew, and the criminals would desist were it not for the persistent negative effect and events. General strain theory is mainly concerned with the strain types and not the strain sourcesRead MoreThe Differential Opportunity Systems Theory1388 Words   |  6 PagesThe differential opportunity systems theory mainly emphasizes on the intervening variables accounting for the specific form that deviance and crime can take. Earlier, Cloward demonstrated the way blocked illegitimate access, and opportunities would be a logical Mertonian strain theory extension. An illegitimate opportunity is regarded as being more than the chance to get away with a deviant or criminal act. It entails expressing and learning the beliefs necessary to support subculture. Such beliefsRead MoreTheories on Crime1253 Words   |  5 PagesTheories on Crime: The field of criminology is basically described as the study of crime through which the causes, prevention, and correction of offenses are examined. While this process can be extremely difficult, especially for students, the analysis of the causes of crime is significant to sociology and criminology. The difficulties associated with the study of crime originate from the numerous challenges in developing theories that explain human behavior. In relation to crime, human behaviorRead MoreTheories of Criminal Behavior Essay examples1239 Words   |  5 Pagesboth the strain and control theories one must factor into their analysis the sub-categories of each theory and how they contribute to the overall spectrum of crime, punishment, and social control. The following evaluation consists of those evaluations that consist of the varying forms of both the strain and control theories of crime; including the strengths and weaknesses of each standpoint, the empirical validity of each, and the o verall ramifications for crime prevention. Strain Theories FrustrationRead MoreThe Revival of the Strain Theory Essay1272 Words   |  6 Pagesconstantly looking for explanations for criminal patterns and crime rates among juveniles. They have presented many theories to serve as such explanations with strain theory being one of them; however, like many other theories, strain theory was pushed aside decades ago. It was not until recently that this theory was given new life by criminologist, Robert Agnew. Robert Agnew introduced this new development as the general strain theory. GST was the first supposition that was not tied to social classRead MoreCrime Theories770 Words   |  4 PagesCrime Theories Jaime Morris Professor Al CIS170-Wk.4Ass.2 11/04/12 Digital crimes are believed to be caused by different types of theories. The Strain theory could be the cause of digital crimes because the strain of everyday life. The Strain theory is a sociological theory. The strain of an individual’s everyday life is causing people to â€Å"give in† to the pressures in society. Some of these individuals feel that they can’t survive without crime. Strains such as peer pressureRead MoreThe Sociological Framework Of The Social System1064 Words   |  5 Pagesthat sees crime through a gendered lens as a result of cultural, social structural, and individual and interactive factors. The four theories include strain theory, social control theory, differential association theory and labeling theory. The following information will describe these theories and how they can relate to the framework. Strain theory says that crime is a result of shared cultural desires, but unequal opportunities to achieve those desires. This discusses economic strain in particularRead MoreThe Major Theories Of Criminal Behavior And The Impact Of Crime On Victims And Society1580 Words   |  7 PagesEvaluating the Major Theories of Cause of Criminal Behaviour and the Impact of Crime on Victims and Society London Foundation campus 1. Introduction Akers Sellers (2013) noted that there are various common theories that are pertinent to the study of crime as the extents of crime explanations range from the genetic/biological through to the economic and social perspective. Howitt (2012) divided these theories into four categories: macro-level or societal theories; locality or community

Macbeth Power Relations - 3173 Words

Macbeth Essay Jess Ireson William Shakespeare’s famous play ‘Macbeth’ both reflects and challenges power relations in the context of the seventeenth century. The play centres round the character Macbeth, who is brave, ambitious and has a tendency to self-doubt, and becomes a murderer due to his lust for power. The play focuses on Macbeth’s psyche and his downfall, yet it also portrays a variety of power relations. The relationship between men and women is represented by Macbeth and Lady Macbeth’s relationship, and the constant change in gender roles. The theme of masculinity is common throughout the play, which is portrayed through contrasting views on gender. Another power relation in ‘Macbeth’ is the relationship between a king and his†¦show more content†¦Macbeth tells the audience why he doesn’t want to kill Duncan, as he is Duncan’s subject and host so he should protect him from danger and â€Å"not bear the knife myself†. Howev er he tells Lady Macbeth a different reason, which is that Duncan has given him â€Å"new honours† and he wants to enjoy the â€Å"golden opinions†. He may be concerned about how Lady Macbeth thinks of him and his masculinity as she displays more masculine traits. Lady Macbeth responds with harsh words, attacking his self-esteem and his manliness. She goads him by questioning his manhood, which is repeated throughout the play, whenever Macbeth shows signs of faltering, Lady Macbeth always implies that he is less than a man. Lady Macbeth calls Macbeth a coward, in which he replies â€Å"I dare do all that may become a man; Who dares do more is none†. She says that when Macbeth made the promise to kill Duncan, he was a man, â€Å"What beast was’t then that made you break this enterprise to me? When you durst do it, then you were a man†. Lady Macbeth again uses strong imagery when she says if she had sworn to act, she would not have backed down, but r ather â€Å"have plucked my nipple from his boneless gums and dashed the brains out†. Lady Macbeth defies her womanly/motherly traits, which challenges a woman’s role in society in the 17th century, as she would have been expected to be a nurturing mother. The uncertain tone and gentle imagery of Macbeth’s soliloquy, contrasts with the strong rhythmsShow MoreRelatedExmine the Masculine and Feminine Representations in Relation to Power in William Shakespeare’s Macbeth981 Words   |  4 Pageschallenged and manipulated throughout the play, Macbeth. William Shakespeare explores the relationship between gender and power within the play, challenging the male dominant society of the 16th century. The play is set in the 11th century, Scotland where a patriarchal society is portrayed through the characters within the Shakespearean production. Qualities such as courage, honour, braveness and control were reflected at that time as masculinity. Macbeth is portrayed through these characteristics inRead MoreMacbeth Analysis1293 Words   |  6 Pagesdisplayed heavy interest in Shakespeare’s Macbeth (Holland 66). Just like Freud, multiple psychoanalysts explore Macbeth’s mental state. William Shakespeare’s tragedy, Macbeth, develops a character who begins as a soldier and becomes a corrupted leader. Readers of Macbeth begin to notice the psychological deterioration of Macbeth as he gains more power. Rollo May, a writer and existential psychologist, distinguishes the five levels of intrapsychic power levels. May argues that the first level, â€Å"survivalRead MoreMacbeth And The Lottery Ticket Analysis1160 Words   |  5 Pagesrelationship can be a close bond with someone or multiple people. In William Shakespeare’s Macbeth, and Anton Chekhov’s short story The Lottery Ticket brings up the idea of wealth in relationships. Wealth takes people in these books from middle to higher status, whether this is in reali ty or in a dream. The relation of wealth is shown through the characters Lady Macbeth and Macbeth, and the Dmitritch’s. Lady Macbeth and Macbeth along with the Dmitritch’s share these qualities of wealth in a relationship. BothRead MoreTheme Of Blood In Macbeth1200 Words   |  5 Pagesreveal a bigger picture in Macbeth. Image patterns. Gender Inversion, fertility, sleep, sensory denial, all of these patterns are depicted in the Shakespeare’s unsurpassed Macbeth. However, there is one pattern that marks the mind more than the others. Blood. A pattern seen in multiple instances in the play, but has a deep-seated meaning with Macbeth and his troubles. Shakespeare uses blood as the main image in Macbeth to reveal the forever impending and mucilaginous power of self torturing guilt.Read MoreThe Tragedy Of Macbeth By William Shakespeare994 Words   |  4 Pagessuch as greed, intolerance, and even power. People would do anything even neglect the needs of others to a ccomplish their reward. At times, it can change an individual’s whole personality. This can be evident in the play, The Tragedy of Macbeth, by William Shakespeare, who sets out a life of a tragic hero, Macbeth, suffering many consequences because of his ambition. Macbeth is told a prophecy from three witches that he will be crowned king. As a result, Macbeth commit several antagonistic crimes toRead MoreUnchecked Power in Shakespeares Macbeth and King Lear1458 Words   |  6 Pagescore. Numerous theories have been put forth to explain the sequence of tragedies Shakespeare wrote during this period by linking it to some experience of melancholy, anger, despair, and the antagonist s ultimate fall from grace in their lust for power. But such theories overlook the fact that it is in this very same period and in the same tragic works that portray the heights to which human nature can rise and fall in its purest and noblest, if not happiest terms. Surely the creation of so muchRead MoreMacbeth : A Major Influence On The Topic Of Marxism1700 Words   |  7 PagesThe play of Macbeth aspects plays a major influence on the topic of Marxism. Marxism acknowledges the numerous amount of power or authority oneself has. To point out the relation marxism has on the people within the play we all would first start by stating who had the most authority, and how it was use. Having the power to be in one’s hand changes the way one another act towards each other. To fully introduce marxism amongst the people in the story you would say the power is different amongst theRead MoreCause Of Macbeths Downfall955 Words   |  4 PagesThe Causes of Macbeths Downfall Essay (English Yearly) INTRODUCTION {DON’T HAVE TOO MANY FACTS IN INTRODUCTION ANAYLISE MORE USING THE FIRST SECTIONS OF EACH PARAGRAPH} Macbeth is a powerful and emotionally intense play. As an audience, we see how a well-regarded and loyal soldier change to a murderous tyrant. Lady Macbeth continuously pressures Macbeth, when he fears he has gone too far, playing a major role in his downfall. It is his ambition, along with the influence of his wife and the strainRead MoreImportance Of Shakespeare s Macbeth 1519 Words   |  7 Pages Importance of the Witches in Macbeth by William Shakespeare Throughout all of history, witches are known for practicing magic and creating prophecies to predict any future. In any scene involving witches, it is important to know their role in the play, whether they change the outcome of the play or simply influenced it, and the supernatural features the play comes along with in its time. In No Fear Shakespeare Macbeth by William Shakespeare, the play starts out withRead MoreHamlet and Macbeth Compared as Aristotelian Tragedies Essay1732 Words   |  7 PagesShakespeare’s Macbeth and Hamlet essentially mirror this definition. While it is true that both plays do not always follow every detail of Aristotle’s rules, they hold true in so many ways that the relation between the works and theory cannot be ignored. Aristotle asserts that tragedy is â€Å"an imitation of an action that serious, complete, and of a certain magnitude† (House, 82) and continues by insisting, â€Å"the most tragic situations arise between friends or between blood-relations, that is between

Art History free essay sample

This paper will attempt to give a descriptive analysis and comparison of two medieval sculptures viewed at the Metropolitan Museum of Art. The first sculpture entitled, â€Å"Virgin and Child;† attributed to Claus de Werve, a Netherlandish sculptor by Pierre Quarre a curator and chief of Musees de Djon and a leading authority on Burgundian sculpture. Claus de Werve was commissioned by the Duke and Duchess of the town of Poligny to create this statue for the convent which was headed by a Francisean nun named Colette between 1415-1417.The statue which is made of painted limestone is believed to be a gift that was commissioned for the convent. The second sculpture is entitled, â€Å"Mother and Child; Mali† which was created in Mali by the Bomana peoples. The statue of Virgin and Child is a religious humane figure of the Virgin Mother Mary and Jesus as a young boy which is associated with the Catholic Church and Christianity. Leonardo began to create deep paintings with spatial illusions, which will be more prevalent in the Baroque period. Leonardo da Vinci, the great artist and inventor of the fifteenth century, came into existence on April 15, 1452, in Vinci, Italy and died in the year 1519. When Leonardo was just fifteen years old, his artistic career had begun. He was an apprentice for a famous artist by the name of Verrochio. While working for Verrochio, he did little things in the background of paintings and eventually became an even better painter than Verrochio. From here he became famous in his early twenties. He achieved much in his lifetime, including beautiful paintings, creative and unusual inventions, life-like sculptures, and many scientific advances. He wasn’t only a painter, but also an inventor. Inventing things like flying machines, geometry, mechanics, municipal construction, canals and architecture. Leonardo da Vinci liked to use two main types of techniques in his work sfumato and chiaroscuro. Sfumato is a technique that artists use to make smoky overall haze effect to a painting using a lightly tainted varnish. Leonardo da Vinci liked to use this technique because dusk was his most favorite time of the day and during dusk usually came fog. Chiaroscuro is a technique in art that is ‘characterized by strong contrasts between light and dark, usually bold contrasts affecting a whole composition. It is also a technical term used by artists and art historians for using contrasts of light to achieve a sense of volume in modeling three-dimensional objects such as the human body. ’ (http://en. wikipedia. org/wiki/Chiaroscuro). The Mona Lisa is also known as La Gioconda; and is perhaps Leonardo da Vincis most famous of paintings. It is an oil painting, painted on poplar wood. Painting the Mona Lisa, Leonardo elevated himself into another station of artist, those that create new forms and perspectives. The relatively small painting of Mona Lisa manages to craft one of the most intense and effective art experience into a compact 30 by 20 ? frame. The painting is most famous for the smile of the woman, which people have been trying to decipher for a long time. Many believe that the portrait is that of da Vinci himself, while many also place a great deal of mystic connections with this painting. The identity of the lady in the painting is not known for certain. The most probable person is the wealthy Florentine Madonna Lisa del Giaconda. However it is also possible that Leonardo did not portrait a specific person. The portrait depicts a womans bust, with a distant landscape that is visible in the backdrop. The woman is shown seated in an open area, and behind her is a vast landscape, which recedes to an icy mountain. Some winding paths and a far away bridge is also perceptible in the background. Leonardo used a pyramid design to install the woman in a simple and calm manner within the painting. The woman is shown with her hands folded, with her breast, neck, and face painted the same color as her hands. The light is diffused so that the various curves and geometrical shapes on the painting are made visible through it. Perhaps the most interesting aspect about the painting is the womans smile. Many believe that it is innocent and inviting; while others believe it is that of smugness and is a smirk. Many scientific studies have been undertaken to determine the exact nature of the smile and the real reason remains a mystery. It is believed that every person sees the smile differently because of the changes in the lighting that Leonardo presented. He modifies the formula however, creating a sense of distance between the sitter and observer, mostly utilizing the arm chair on which she rests. Everything about her posture speaks reservation and silence. However, her eyes silently meet the gaze of the observer, drawing the viewer into her eye line. Everything surrounding her face is dark, bringing that much more focus to the light of her face and the attraction it provides. The overall effect is a kind of natural attraction to her, drawn in by her appearance, but it immediately contrasts with the distance Leonardo creates between subject and observer. We now move to the Modern Era and will be focusing on the artist Willem de Kooning. De Kooning was born in Rotterdam, Holland, in 1904 and died in 1997. It was there he attended crafts school and then a traditional art academy. He was influenced by artists such as Piet Mondrian and Theodore van Doesburg, as well as Picassos Cubism. The explosive nature of de Kooning`s work tells us that it is an art of struggle, that its source is both painful and personal, obviously based on feeling over intellect and very probably stemming from some primal event (as Freud might term it) in his early life, or series of events, so traumatizing that the artist was forced to thrust them into his unconscious, and has spent a lifetime trying to keep a lid on them, only to have the unconscious contents violently erupt countless times in his paintings. Evidence of this conflict in de Koonings paintings seems the unremitting violence of the artists attack upon the women who are his subjects and the paint surface itself. De Koonings women have taken a terrible fall from purity into filth and degradation, becoming very torn and scarred in the process. They are, in the paintings, voluptuous but depraved, alluring but dangerous, disillusioning and disappointing in their fall from the pedestal nd therefore must be symbolically destroyed. Woman I is just that type of a painting, Abstract Expressionism. More than any other, the work of Willem de Kooning probably epitomizes how this movement came to be visualized by most Americans. His 1950-52 Woman 1, with its garish, horrifying face and massive breasts was just barely figurative enough for the public to grasp; yet ugly enough for them to hate. Woman 1 depicts a distorted human form, with goat’s hooves instead of feet. Eyes as big as grenades, teeth grinning violently, huge limbs, mountainous breasts this woman is exaggeratedly, absurdly physical and at the same time not there at all, a spewed monster of fantasy. There is no body here. The woman is a woman in the painters mind – a fabrication of colour and brushwork, with the splattered, pushed, released paint telling us unequivocally that it is a furiously sexual vision. No doubt many in seeing it for the first time visualize just such a scenario. In fact, it was anything but spontaneous. Though he didnt work on it daily, it took two full years to complete; going through constant, one might say almost endless, revisions. Near the end, de Kooning even went so far as to discard it. Then, weeks later, he rescued it from the trash, reworked it some more, and sent it off to be exhibited. In comparing the two artists; Leonardo da Vinci and Willem de Kooning, we can clearly see a vast difference here. In Leonardo’s era, the focus of the subjects was more natural, focusing on definite light sources and having a sense of order and stability. The High Renaissance era was also no longer dependant of Church and Royalty for influence on what to paint; which gave artist like da Vinci the opportunity to explore new techniques applied to his astonishing pieces. Leonardo da Vinci focused on the soft side of the woman, paying respect to the curves and inner as well as outer beauty of the woman. His lines are clean, precise. Willem de Kooning; however, takes the image on the woman and distorts it, almost in a disrespectful way. He enjoyed making paintings that leave the observer wondering what the painting s about, what feeling we have when we look at the painting weather it is anger, joy, love, or hate. He does not value woman as Leonardo seems to and depicts them as strange human ‘objects’ and in an abstract and ‘sloppy’ way. The two artists do however have something in common. Both eras show how each artist was branching out from the previous era and wanted to explore new techniques and new ways of exp ressive views of painting. In the end, Kooning and da Vinci have both had a major impact on Art History and intensified art and will always have an impact on artist to come.

MACBETH Essays (1691 words) - Philosophy, Ethics, Fiction

MACBETH Macbeth is presented as a mature man of definitely established character, successful in certain fields of activity and enjoying an enviable reputation. We must not conclude, there, that all his volitions and actions are predictable; Macbeth's character, like any other man's at a given moment, is what is being made out of potentialities plus environment, and no one, not even Macbeth himself, can know all his inordinate self-love whose actions are discovered to be-and no doubt have been for a long time- determined mainly by an inordinate desire for some temporal or mutable good. Macbeth is actuated in his conduct mainly by an inordinate desire for worldly honors; his delight lies primarily in buying golden opinions from all sorts of people. But we must not, therefore, deny him an entirely human complexity of motives. For example, his fighting in Duncan's service is magnificent and courageous, and his evident joy in it is traceable in art to the natural pleasure which accompanies the explosive expenditure of prodigious physical energy and the euphoria which follows. He also rejoices no doubt in the success which crowns his efforts in battle - and so on. He may even conceived of the proper motive which should energize back of his great deed: The service and the loyalty I owe, In doing it, pays itself. But while he destroys the king's enemies, such motives work but dimly at best and are obscured in his consciousness by more vigorous urges. In the main, as we have said, his nature violently demands rewards: he fights valiantly in order that he may be reported in such terms a "valour's minion" and "Bellona's bridegroom"' he values success because it brings spectacular fame and new titles and royal favor heaped upon him in public. Now so long as these mutable goods are at all commensurate with his inordinate desires - and such is the case, up until he covets the kingship - Macbeth remains an honorable gentleman. He is not a criminal; he has no criminal tendencies. But once permit his self-love to demand a satisfaction which cannot be honorably attained, and he is likely to grasp any dishonorable means to that end which may be safely employed. In other words, Macbeth has much of natural good in him unimpaired; environment has conspired with his nature to make him upright in all his dealings with those about him. But moral goodness in him is undeveloped and indeed still rudimentary, for his voluntary acts are scarcely brought into harmony with ultimate end. As he returns from victorious battle, puffed up with self-love which demands ever-increasing recognition of his greatness, the demonic forces of evil-symbolized by the Weird Sisters-suggest to his inordinate imagination the splendid prospect of attaining now the greatest mutable good he has ever desired. These demons in the guise of witches cannot read his inmost thoughts, but from observation of facial expression and other bodily manifestations they surmise with comparative accuracy what passions drive him and what dark desires await their fostering. Realizing that he wishes the kingdom, they prophesy that he shall be king. They cannot thus compel his will to evil; but they do arouse his passions and stir up a vehement and inordinate apprehension of the imagination, which so perverts the judgment of reason that it leads his will toward choosing means to the desired temporal good. Indeed his imagination and passions are so vivid under this evil impulse from without that "nothing is but what is not"; and his reason is so impeded that he judges, "These solicitings cannot be evil, cannot be good." Still, he is provided with so much natural good that he is able to control the apprehensions of his inordinate imagination and decides to take no step involving crime. His autonomous decision not to commit murder, however, is not in any sense based upon moral grounds. No doubt he normally shrinks from the unnaturalness of regicide; but he so far ignores ultimate ends that, if he could perform the deed and escape its consequences here upon this bank and shoal of time, he'ld jump the life to come. Without denying him still a complexity of motives - as kinsman and subject he may possibly experience some slight shade of unmixed loyalty to the King under his roof-we may even say that the consequences which he fears are not at all inward and spiritual, It is to be doubted whether he has ever so far considered the possible effects of crime and evil upon the human soul-his later discovery of horrible ravages produced by evil in his own spirit constitutes part of the tragedy. Hi is mainly concerned, as

The Axis of Evil vs. Evil Empire Sample Essay Example For Students

The Axis of Evil vs. Evil Empire Sample Essay The phrases â€Å"Evil Empire† by Ronald Reagan. and â€Å"Axis of Evil† by George w. Bush where phrases used by both presidents to indicate marks that were unsafe or a menace to the universe ; such as the Soviet brotherhood or Iran developing atomic arms among with Iraq and north Korea. Both of these addresss were indicating out the â€Å"bad cats of the world† as in meaning to maintain the peace. but it was besides a manner that the United States Military forces could take action and get down a struggle against the â€Å"bad guys† . In 1983 Ronald Reagan predicted the terminal of the Soviet Union. and he describes the socialist province as â€Å"the focal point of immorality in the modern world† because of its military capablenesss. The Soviet Union was under great troubles in the late 1970’s and early 1980’s. Bloated military budget. societal jobs. and economic stagnancy where the chief issues among others. In January 29 2002 Presid ent George W. Bush gave the term â€Å"axis of evil† to the states of Iraq. Iran and North Korea. These states were portrayed by George W. Bush during the State of the Union as possessing atomic arms ; the axis of immorality was condemned as a totalitarian government who was carrying arms of mass devastation. We will write a custom essay on The Axis of Evil vs. Evil Empire Sample specifically for you for only $16.38 $13.9/page Order now Bush lambasted these states for denying their people’s freedom. rejecting international reviews. and cultivating nervus gas and splenic fever. The two addresss have similar thoughts despite the different epoch. both of them speak about states or organisations that are considered possible dainties. they make them look like evil forces with possible devastation forces upon the people of the United States and the universe. In Ronald Reagan the address is seeking to come to a peacefully understanding with the Communists. and in George W. Bush address provides more grounds against the enemies and declares that the war against panic is merely acquiring started. Both of the addresss â€Å"excuse† the United States Military to take immediate actions against those evil forces. Some differences could be the external factors. In the cold war the was the tenseness betweem the communist universe and the United States. the Soviet Union wanted to populate in a universe in where the U. S were defeated and both states were in a â€Å"race† to develop arms and engineering. Meanwhile in the war against panic the struggle was created because of states possessing so much arms and heavy weapon including atomic. biological or chemical arms. The Cold War was a stand-off between the United States and Russia. At this clip. America truly felt threatened ; no one knew whether they’d wake up the following forenoon absolutely all right. or watching the sky as an atom-bomb fell from a Russian plane. The Soviet Union wanted to get the better of the United States. but the Soviet Union was besides in great troubles at the clip. America was in great fiscal emphasis as the World War had merely ended. The war on terrorist act is the existent war against terrorists groups that started slaying people on 2001 September. 11. It was a similar scenario to the cold war. people didn’t cognize if they’ll board a plane and arrive at their finish safe and sane. or leap in a plane that is being hijacked and crashed into say. the White House. Peoples are in a terror here every bit good. non to advert there is a widespread hatred for Muslims because of their wrongly placed association with terrorists. as Russian citizens were one time associated with Communist undercover agents. The United States was besides in great fiscal emphasis. .u5b80c05a1ec176ad616ebd7fd0343174 , .u5b80c05a1ec176ad616ebd7fd0343174 .postImageUrl , .u5b80c05a1ec176ad616ebd7fd0343174 .centered-text-area { min-height: 80px; position: relative; } .u5b80c05a1ec176ad616ebd7fd0343174 , .u5b80c05a1ec176ad616ebd7fd0343174:hover , .u5b80c05a1ec176ad616ebd7fd0343174:visited , .u5b80c05a1ec176ad616ebd7fd0343174:active { border:0!important; } .u5b80c05a1ec176ad616ebd7fd0343174 .clearfix:after { content: ""; display: table; clear: both; } .u5b80c05a1ec176ad616ebd7fd0343174 { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .u5b80c05a1ec176ad616ebd7fd0343174:active , .u5b80c05a1ec176ad616ebd7fd0343174:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .u5b80c05a1ec176ad616ebd7fd0343174 .centered-text-area { width: 100%; position: relative ; } .u5b80c05a1ec176ad616ebd7fd0343174 .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .u5b80c05a1ec176ad616ebd7fd0343174 .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .u5b80c05a1ec176ad616ebd7fd0343174 .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .u5b80c05a1ec176ad616ebd7fd0343174:hover .ctaButton { background-color: #34495E!important; } .u5b80c05a1ec176ad616ebd7fd0343174 .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .u5b80c05a1ec176ad616ebd7fd0343174 .u5b80c05a1ec176ad616ebd7fd0343174-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .u5b80c05a1ec176ad616ebd7fd0343174:after { content: ""; display: block; clear: both; } READ: Totalitarian Agriculture EssayThe Cold war and the war on Panic are really similar ; the struggles reveal that when the United States is in economic problem it develops a demand for holding a psychological enemy. Given the fact that the United States Military is known as the most advanced of the universe. and how the U. S can bring forth so much net income out of a war because of advanced military engineering and war stuffs. Just like in World War II. that the U. S was the lone state to do a net income out of it. It could be said that the United States develops these struggles to acquire out of an economic depression. Both of these struggles terrorize citizens into bit by bit deteriorate their civil autonomies. These struggles were alibis for one-sided invasions.

Simon Bolivar essays

Simon Bolivar essays The Generals Disunited States of South America Let us hasten to break the chains of those who groan in the dungeons waiting for salvation from you. Do not betray their trust. Do not be deaf to the cries of your brothers. Avenge the dead, save the dying, relieve the oppressed, and bring freedom to all! Those were the powerful words written by Simon Bolivar, which persuaded the people of Colombia to support him with the liberation of foreign states. Never before has South America seen a leader as determined as Bolivar, a man willing to sacrifice his life for the rights and freedom of the people by any means necessary. He was an excellent horseback rider, a man who killed a monk with his sword, an excellent strategist in the battleground, a general who enlisted the help of cannibals in his army, a man who escaped several assassination attempts, and a boy who played badminton with a young Spanish prince Ferdinand in his palace. They fit the description of Simon Bolivar; a man who accomplished more during his forty-seven years of lifetime, than forty seven men could hope to achieve in a hundred years. The Latin American Wars of Independence do not form an easy to tell narrative; there were different levels of violence, different revolutionary ideals and levels of popular participation throughout the Spanish colonies. Simon Bolivar was a man of integrity living among corruption, whose ideals and philosophies were seldom appreciated before his death, but they continue to be a basis of influence in modern South American society. The young and relentless general, Simon Jose Antonio de la Santisima Trinidad Bolivar became publicly known as the Liberator when he rid the South American colonies of three hundred years of Spanish rule. He was born into an aristocratic family on Caracas, Venezuela in 1783. During his early life, he was taught the non-conformists ways of Jean Jacques...

Assessment task 2 Essay Example | Topics and Well Written Essays - 1250 words

Assessment task 2 - Essay Example iv. The outcome of the intervention is for better diagnosis which helps to set the appropriate treatment for the patient. The question that makes need of my research is whether performing of ECG test on patient arrival helps in better diagnosis compared to delayed ECG test on stroke’s patients ? PART II The method of searching online has been used as a resource for information. These are research healthcare databases such as Medline plus, U.S National Library of medicine. The reason to use this database is that it is a nursing database that you can search online and offer usually access a greater scope of information. The most nursing research and articles as well as journal are found mainly on this database. Medline plus is also a free access to the public. This provides a tool for nursing in finding the resources a given case study as it is in my research. I made my search on electronic databases as well as catalogues in finding the information that was to link the case stud y of ECG test on stroke and also give the appropriate information. I made use of a key word that was typed on Google search. The basic search method that was followed are; identifying the key concept to be searched, entering keyword into the Google search box , clicking on search then an appropriate database was evaluated based on information presented and the level of trust to the source of this information. On evaluation after comparison with other sources such as The Alan E. Lindsay, ECG Learning center in cyber space but felt Medline plus had more accurate information which met my search demand. Other sources that were identified and downloaded on this ECG test but gave sketchy information on it and hence Medline plus was taken as the best. PART III A stroke usually happens if the blood flow stops to some part of the brain. Causes of stroke When blood flow get stopped for long as few seconds and the brain does not get blood which carries with it oxygen then it can cause the cell s to die and this causes a permanent damage. Usually there are two types of stroke that are major. They include; ischemic and also hemorrhagic stroke. Ischemic stroke occurs at the time when blood vessel supplying blood to the brain gets blocked by a clot in blood. This usually happens in two ways: A clot forms in the artery which is very narrow (thrombotic stroke),a clot breaks off right from any place of blood vessels that are in the brain or from other parts of the body and then travels to the brain(cerebral embolism or the embolic stroke). Ischemic strokes can be caused by clogging of arteries. Some Fat and cholesterol usually collect on the walls of arteries and forms sticky substance known as plaque. Hemorrhagic stroke usually occurs if the blood vessel on brain part is weak and bursts thereby causes blood leak to the brain. Some people may have defects that are in blood vessels and in the brain making this likely to happen (Latchaw 2009). STROKE RISK FACTORS High blood pressu re is a high risk for strokes followed by the others such as; Atrial fibrillation, Diabetes, Family history on stroke, High cholesterol, age(especially in age 55 and above) and race such as black people who are more prone to dying of a stroke. People with heart disease and also poor blood flow from

Identity Theft Research Paper Example | Topics and Well Written Essays - 1000 words

Identity Theft - Research Paper Example In this regard, the paper will also assess how these bodies handle such cases. Identity theft Introduction Identity theft is argued to be a form of stealing someone’s identity whereby the thief pretends to be the victim, characteristically in order to have access to resources in the victim’s name and identity (Vacca, 2003). This form of theft can cause and lead to adverse consequences to the victim in the event of being held accountable for crimes committed by the thief. According to Hammond, (2003), identity theft takes place when someone uses other person’s personal identification documents or information. Some of the common identification documents or information prone to such effects includes social security number or credit card number, which are used by identity thieves to commit fraud or other related crimes (Hammond, 2003). Different methods of how someone’s identity can be compromised and what identity thieves do with stolen identity Stealing is o ne and most common method used by identity thieves to obtain victims personal information. This mostly happens in the streets whereby thieves snatches or steals a purse or wallet (Social engineering framework, 2011). This can also come in the form of identity victims kidnapping victims and asking them to disclose their personal information. Using this method, identity thieves can go further to commit various crimes using the victim’s personal identification documents or information. Dumpster diving is a method used by identity thieves by a way of rummaging through the other person’s trash for them to look for some personal information that can aid them launch an attack (Social engineering framework, 2011). In some cases, people dump vital personal information documents without being aware of the danger they pose. However, some documents are dumped after being considered irrelevant or after being used. Identity thieves can use such information obtained from peopleâ€⠄¢s trash to commit a crime. Skimming is a situation where the thief uses a special device to store victim’s personal information. Skimming is a form of high-tech technique whereby thieves scan or swipe victim’s credit or bank card in order to get off the magnetic strip (Social engineering framework, 2011). This is common in areas where victims use their personal documents to purchase items or services. Phishing is another method used to by identity thieves to obtain personal information of their victims. They pretend to be a financial institution or other organizations that people presume to be genuine. They send a malicious email in the effort to encourage their victims to enter specific information (Vacca, 2003). Unknowingly, victims provide all their personal information, which is used by the impersonators. Changing of address is also used by identity thieves whereby they change victims address mostly in situations where victims have to fill out a â€Å"change of address† form. They can transfer victim’s bills after ordering high ticket items. Pretexting is also another method used by identity thieves by a way of using false pretense to obtain the victim’s personal information for them to use it to carryout various crimes (Vacca, 2003). Thombstone theft is another method used to steel personal information. It involves stealing dead person’

Acupressure Complimentary Treatment Assignment Example | Topics and Well Written Essays - 2500 words

Acupressure Complimentary Treatment - Assignment Example Acupressure machine rental within the center itself. The machines can be used in the center which will be open six days per week and can be rented out on a pay per session rate of  £10 plus vat or a monthly subscription of  £100 per month plus vat. The complementary therapy. The therapists will be partnering with the center so they will not receive payment for attending rather they will receive a fifty percent split on profits earned per session. My model encourages the complimentary treatment model to be rolled out away from its usual niche environment and instead it is on offer in a high street setting. Up to now, any complimentary centers which I have seen operating in the high street have operated in below par premises which are not in keeping with a therapeutic environment. By offering a quality service in a high street environment at a competitive rate this presents a unique offering to the customers. Furthermore, the implementation of acupressure rental is a significant addition to the therapeutic center; it provides an economic therapeutic option to the customer while presenting my business with another viable income stream. Also, complementary treatments can be upsold from acupressure rental subscribers and cross sales can be created from therapy customers to acupressure machine rental. Up sales to complementary therapies in the center namely: Acupuncture; Head massage; Reflexology and kinesiology and also cross sales back from the therapies to device rental. There is also the logic behind the therapies been offered; acupuncture is a natural progression from acupressure rental; head massage is a quick and relaxing treatment which suits busy shoppers as does Reflexology.  Ã‚  

Role of Risk Management in an Organisation

Role of Risk Management in an Organisation Task One – Individual Research Report The Task You are asked to research, critically examine and discuss the role of the ‘risk management’ function within an organisation. Examine and discuss the purpose of risk management within an enterprise. The purpose of risk management in an organization is to identify the possible problems before it occur in a business. Risk handling actions may be deliberated and raised as needed through the life of the creation or plan to alleviate opposing impacts on attaining objectives. Risk management is a constant and progressive process that is significant part of business. It address issues that endanger the achievement of objectives. Constant risk management method is practical to successfully expect and alleviate the risks that have serious impact on the plan. To have an effective risk management it should have a comprised aggressive and early risk documentation through the association and participation of related inventors. Technical issues are a main concern both early and during all plan stages. Risk management must deliberate both external and internal sources for schedule, cost, and technical risk. Examine and discuss the benefits of risk management within an enterprise There are a lot of benefits of risk management within an enterprise. Some of those are formation of a more risk that is focused on culture for the organization. In this the organization will implement ERM note that will increase the focus on risk. The senior ranks results in more conversation of risk at all levels. Discussion of risk and communication is recognized as a process to deliver information to senior management and also a way to segment risk information inside and through operations of the company. In that case it will let improved visions and decision making regarding risk at all levels. Regular risk reporting, ERM maintain better structure, broadcasting, and investigation of risks. Consistent reports can progress the focus of executive and directors by providing data that allows improved risk moderation decisions. Improved focus and perspective on risk. Efficient use of resources and effective coordination of regulatory and compliance matters. Examine and discuss each of the following risk management components explaining how they relate to the overall role of the ‘risk management’ function Reviewing of activities and internal environment The internal environment contains the manner of an organization, persuading the  risks awareness of its people, and the foundation for all other people. It provide  discipline and structure that the people will follow to avoid risk management. Internal  environment factors include an individual’s risk management and it over sight by the  board of directors its integrity, ethical values and competence of the individual. An  organization’s internal environment has a significant impact on how enterprise risk  management is implemented and functions on an ongoing basis. Setting objectives Objectives are set in every organization or business in order to evade risk management. Establishing a basis for operations, reporting, and compliance objectives. Every  Individual have a different risks from internal and external sources, and a qualification  active incident, documentation of risk assessment, and risk response to establish  objectives aligned with the individual risk desire which drives risk tolerance levels for  the object. Also objective is the guide that one business should follow  in order to have a good outcome. Event identification Management identifies potential event that will affect the individual and determines whether they represent opportunities that might adversely affect the individual ability to successfully implement strategy and they will achieve their objectives. Event should be positive impact so that no rick will develop in individual which will lead the management assessment and response. Risk assessment with particular reference to the impact and likelihood of risk Risk assessment allows a person to deliberate the level to which potential events have  an impact in achieving the objectives. In risk assessment it can be qualitative or  quantitative methods wherein they can used questionnaires that they can distributed to  the employee and the company or business owner will be able to determine what the  risk management problem in the company. They will assess it together with the top  management and the board to develop a certain solution that will help them  in resolving the risk management. Risk response plans After assessing the relevant risk, management now determines how will respond. Responses may include risk avoidance, reduction, sharing, and acceptance. In  seeing its response, management assesses the result on risk likelihood and impact,  as well as costs and benefits. Management identifies any opportunities that might be  available. At the completion of its risk response actions, management may have a view  of individual risks and responses and their place with associated acceptance. Control activities Procedure and policies that help ensure that the management risk respond is carried out  is the control activities. Also the activities happen all over the organization in all  functions and levels. Control activities include a variety of activities such as  reconciliations, authorizations, verifications, approval and reviews of operating  performance also segregation of duties and security of assets. Control activities generally  established to ensure risk responses are appropriately carried out by individual with  respect to certain objectives. Information and communication Relevant information is identified, taken, and communicated in a form and now the  people are given timeframe that enable them to carry out their responsibilities. Information gathered are generated as data. That information will provide the  management the risk that they need to resolved and making informed decisions relative  to objectives. Effective communication also have an important role in risk management,  it is one of the important factors in a company. All workers must get a clear message  from the management that enterprise risk management responsibilities must be taken  seriously. They should understand their own role in enterprise risk management, as well  as how they will relate the activities to their work and to the work of others. They must  have a means of communicating significant information upstream. There is also effective  communication with external parties, for example customers, suppliers, regulators, and  shareholders. Monitoring Enterprise risk management is monitoring and assessing the presence and functioning of its mechanisms over time. This is being done through ongoing monitoring activities. The management do evaluation to monitor the performance of the people. Through evaluation they will know if the people in the company are implementing the objectives and no risk management will happen. Ongoing monitoring occurs in the normal course of management activities. The opportunity and occurrence of separate evaluations will depend mainly on the assessment of risks and the effectiveness of constant monitoring actions. Enterprise risk management deficiencies are reported to top management and the board.

A Study of Factors Driving Shareholders’ Value

[pic] A Study of Factors Driving Shareholders’ Value and Influencing Sensex Fluctuation In India Executive Summary The objective of this project is to analyze the most important factors which drive shareholders, value. Shareholders’ value here refers to the MVA (market value added) which means the additional value which shareholders are earning on their invested money. The performance of a company matters a lot in creating a positive image of that company in front of its stakeholders. Moreover, the main objective of a company is to maximize the shareholders’ value. So, shareholders always want to know that the Company with whom they have entrusted their hard earned money is efficiently utilizing it and thus, creating Value for them. We have always read the annual report of the Companies to find out information about their â€Å"top line† and â€Å"bottom line†. We also have various financial ratios and terms which act as essential factors to consider for our aid like Return on Capital Employed (ROCE), Return on Net worth (RONW), Earning per Share (EPS), Dividend per Share (DPS), Debt Equity Ratio (D/E Ratio) and Economic Value Added (EVA). This research is an attempt to find out whether EVA, DPS, D/E Ratio, EPS, ROCE, RONW of the companies listed in sensex really explains the value accretion for the shareholders and cause fluctuation in sensex. So, I have taken these variables as Independent variables and MVA as a dependent Variable (shareholders’ value) to apply regression analysis to come out with a result that which variable is having a high degree of Correlation with MVA and significantly explains variation in MVA. To perform this analysis secondary data has been collected from Prowess and www. bseindia. com Out of 30 companies listed in sensex, 23 companies are selected as sample. 7 companies are eliminated because of inadequate information available for these companies. The reason behind choosing these companies is that their reliability in terms of selection of the Companies as only those Companies are selected which have a listing history of at least 3 month with sufficient trading frequency. After that the data of different financial indicators of these Companies (RONW, ROCE, D/E Ratio, EPS, DPS, Avg. Market Capitalization and Beta value) are collected for the period of 2003-2008. CAPM model is used for calculating cost of equity. The EVA and MVA is calculated. After that change in MVA has been calculated with respect of previous year. Here 2003 has been taken as a base year and study has been done year wise from 2004-2008. Both EVA and Change in MVA are standardized by dividing both of them by Net Worth of the respective companies. This is done in order to get relative value of EVA and MVA over the same Net Worth. SPSS software is used for applying simple and multiple regression analysis. First Simple regression has been applied taking one Independent variable at a time in order to find most important variable and eliminate least important variable and analyze each variables influence over Change in MVA individually. After this multiple regressions has been applied in order to find the combination of Independent variables which are strongly correlated with change in MVA. In my study EVA has been found the most important variable then RONW, and then ROCE. These variables are having a high degree of correlation with change in MVA and significantly explaining the variation in MVA individually. While the combination of EVA, EPS, and DPS are having a very high degree of correlation with change in MVA. So, my analysis shows that it is best to invest in a company generating higher and positive EVA, RONW, and ROCE it will add additional value to shareholders. INDEX Chapter-1 Introduction Page No. 1. 1 Company Profile†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 12-13 1. 2 Product & Services Offered by IL Investsmart†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 14-16 1. 3 Background of the Problem†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦17-19 1. Introduction of the Project†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â ‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 20-21 1. 5 Scope of the Project†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 22 1. 6 Literature Review†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 23-24 1. 7 Abbreviation†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 25 1. 8 Research Objective†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 26 1. 9 Introducing MVA and EVA†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 27 Chapter-2 Research Methodology†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦29-30 2. 1 Limitation of Research†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 31 Chapter -3 Research Analysis 3. 1 Different Measures used for Analysis†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦36-36 3. 2 Regression Analysis†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 37 3. Year wise Result of Simple Regression analysis†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦38-42 3. 4 Overall Re sult of Simple Regression Analysis†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 43 3. 5 Year wise Results of Multiple Regression Analysis†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 44-62 3. 6 Overall result of Multiple Regression Analysis†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 63-64 Recommendations†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 65 Conclusion†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 66 Bibliography†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢ € ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 67 Appendices Appendix-1 Table of Annual Return of Sensex†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 68 Appendix-2 Table of Year wise Annual NOPAT of the Companies†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 9 Appendix-3 Table of Year wise Annual RONW of the Companies†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 70 Appendix-4 Table of Year wise Annual ROCE of the Companies†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 71 Appendix-5 Table of Year wise Annual D/E Ratios of the Companies†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 72 Appendix-6 Table of Year wise EPS of the Companies†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 73 Appendix-7 Table of Year wise DPS of the Companies†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã ¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 74 Appendix-8 Table of Year wise Annual Market Cap. of the Companies†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 75 Appendix-9 Table of Year wise Equity of the Companies†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦76 Appendix-10 Table of Year wise Bank borrowing of the Companies†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 7 Appendix-11 Table of Year wise Annual Beta value of Companies†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 78 Appendix-12 Table of Year wise Levered Beta value of Companies†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦79 Appendix-13 Table of Year wise cost of equity of Companies†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 80 Appendix-14 Table of Year wise Cost of Capital of Companies†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 81 Appendix-15 Table of Year wise EVA of Companies†¦Ã¢ € ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 82 Appendix-16 Table of Year wise Stdz. EVA of Companies†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 83 Appendix-17 Table of Yaer wise MVA of Companies†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 84 Appendix-18 Table of Change in MVA of Companies†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 85 Appendix-19 Table of Stdz. MVA of Companies†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 86 Chapter-1 Introduction 1. 1-Company Profile: IL IL Investsmart Limited (IIL) is one of India’s leading financial services organizations providing individuals and corporate with customized financial management solutions. Investsmart has a strong presence across wide range of products and operates in the areas of Investment Management and Advisory Services, Broking Services, Merchant Banking, Project Syndication, Equity and Debt Broking, Commodity Broking and Distribution of Financial Products. Earlier the company was owned by IL Group but is now held by HSBC, one of the world's largest banking and financial services organizations. According to press Release by HSBC, the Company has completed the acquisition of 93. 86% of IL Investsmart Limited for a total consideration of INR 1,311 Crore. According to Sandy Flockhart, Group Managing Director & Chief Executive Officer of Asia-Pacific, Investsmart will give HSBC access to the World’s third-largest Investor base, with over 20 million retail Investors. The business already has 143000 Customers. The documentation and name changing process is yet going on (till 15th June 2009). In India, The HSBC Group offers a range of financial services including corporate, commercial, retail and private banking, insurance, asset management, investment banking, equities and capital markets, institutional brokerage, custodial services. It also provides software development expertise and global services facilities for the HSBC Group's operations worldwide. IL Investsmart Ltd has an all India presence through its network of branches and franchisees over 128 cities. Following a successful Initial Public Offer (IPO), IIL has been listed on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). IIL is geared towards understanding and achieving the financial goals of all its customers, through its specialists in the aforesaid areas. IIL’s 2000 employee provide a complete range of Investment solution in India through 88 branches and 190 Franchisee outlets from 128 Cities. It has been recognized as â€Å"National Best Performing Financial Advisor – Retail† for two years in a row (06-07 and 07-08) by CNBC TV 18, With a market capitalization of approximately US$260 million. The Corporate Office and Research Division are located in Mumbai. In Delhi, the regional office is at Caunaght Place and the branch office is at Pitampura. . 2-Products and Services Offered by the IL: The Company has grouped its Product and services in following manners: o Retail Offering o Institutional Offering o Advisory Report & Advisory Services o Online Trading Retail Offering: It includes Advisory Products regarding research reports and analysis. Trading product: It includes Equity and Derivatives. NRI Products: It includes NRE Equity, NRI Portfolio Management services, Mutual Funds, IPO, Insurance, Wealth Management Products, PAN card services, Advisory Report and Accounting and income Tax return filling in India. Institutional Offering: |Investment Banking Services | |IL Investsmart (IIL) offers extensive range of Investment Banking Services for equity | |related products and instruments. Their team advises Customers on transactions like business | |structuring and capital raising opportunities based on their corporate needs and state of capital | |markets. Services it specialize in include Management of: | |Initial Public Offering (IPOs) | |Follow-on Offerings | |Qualified Institutional Placements (QIPs) | |Buyback of Equities | |Open Offers | |Mergers & Acquisitions | |Private Equity Placements | |ESOPs | |Institutional Equity Broking Services: | It includes IPOs, equities, derivatives and mutual funds. It also focuses on identifying undiscovered value stocks to investors. Through its gamut of services, this division is well-suited to corporate investors, banks, financial institutions, insurance companies and FII’s. Their Institutional Equity Business (IEB) is well positioned to offer support for a complete range of investment banking service to corporate. Institutional Debt Broking Services: | Its institutional debt broking division includes, secondary market broking, primary market debt placement & distribution and provident fund advisory services. Advisory Report & Advisory Services: It includes Equity Report, Mutual Fu nd Report, Debt Market Report, Sector Report, Derivatives & Technical Reports. The reports are sent to the Customers on a daily basis before opening of Stock Market in the Morning through email. It also provides Advisory Services by message alert and appointing Relationship Manager to HNI clients. Online Trading: For Online trading Company provides three products as online trading Platform: SmartStart It is a powerful browser based trading system for those who are relatively new to online investing. A unique integrated account, which integrates Cusomer’s banking, broking, and demat accounts. A comprehensive trading service, which allows Investors to invest in equities and derivatives. SmartStart trading platform allows you the flexibility of trading on any internet capable system, with access to both the NSE and BSE. SmartInvest is a browser-based system designed for customers who transact occasionally. It is ideal for investors who believe in the Buy and Hold approach towards investment in equities. SmartInvest's capability as a browser-based trading platform gives the benefit of real-time streaming data with the flexibility of trading on any Internet capable system. With access to both the NSE & BSE. SmartInvest sophisticated yet easy to use point and click order entry interface allows you to react more quickly to the markets and make better decisions. SmartTrade is an EXE based desktop software designed for active traders who transact frequently to capture favorable short-term price movements. The platform offers active traders the tools they need to make critical decisions with confidence. SmartTrade is designed and built from the ground up to address the needs of active traders. SmartTrade makes the most of state-of the-art technology to deliver power, speed and reliability. Through an easy-to-use interface, users are provided with the same tools and advantages that the professionals enjoy. 1. 3-Background of the Problem In two month of my training my job was divided into two parts. In one part I was told to sell the online trading product of the Company and in other part I was told to do my project in equity research. Since the Company is very much customer oriented, It wants to give a complete Investment solution to the customer so that the Company can delight them. For this company has a research division located in Mumbai. Since I was working in Pitampura Branch and that branch deals in Equity only (Online trading Product). So, I was upposed to do my project on Equity research. In this two month as a summer trainee I use to generate Client Database from my own sources and then approaching to the potential Customers by calling and arranging meeting with them and finally converting them into Customers. I was also handling the query of Existing Customer s of the Company regarding Online Products. On the basis of their Query I felt that the new retail Investors as well as existing Customers need a strong support from company to have an idea in which stock they should invest, so that in future their investment will result in a positive or will increase market value of their Investment in Stock market. For this Company use to send three research reports regarding better investment option on a daily basis on their email-id, message alert on mobile, and appoint Relationship Manager. So, for complete Customer satisfaction the company needs to have a strong research Division which is already there in Mumbai. Moreover, because of Global Melt Down investors are very much afraid to invest in Stock Market as the sensex reaches to a minimum of 8000 from 21000 within a Year. Now they are looking for those brokerage firms, which will guide them with a strong research analysis. So, in this case it is very much essential for the Research analysts working in the Company to analyze those factors which are really going to accelerate the market value of share holders in order to gain a competitive edge over the Competitors. It is the time to do an in depth study on those factors which an investor should consider before investing in a particular Company or Stock, if they want to add some more money to their pocket. So, I was given a task to analyze those financial factors which will drive the share holders’ value in future and will keep them at safe end for a long as well as short term Investment. Since, if the market value of stock will increase, sensex will also go up. So, here we need to study on those factors which will increase the Market Value. First thing which comes in my mind is that Stock of a particular Company is very much similar to a person, like whatever is happening in a person’s life, he or she is the one who is responsible for that. For example if a person is not able to pass an MBA exam then we say that something is wrong with his or her mind, if he or she is not able to walk properly then something is wrong with his or her health. It means the problem is within the person. The same things apply in the stock Market like if a company is not able to increase its market value (Share holders’ Value) or market Capitalization it might be the reason that Company is not performing well, not generating enough Profit, not able to use its assets in an effective and efficient manner, not able to increase the earnings of its owner and etc. because of which it is destroying the share holders’ value. So, I decided to work on the financial performance of Companies itself and to analyze whether the financial Performance of a company like (RONW, ROCE, D/E Ratio, EPS, DPS, EVA) is having any kind of correlation with their market value. I have also tried to analyze that is it so that we should consider these factors as a driver of Share holders’ value? Will positive change in these factors give positive result to the Share holders? This is the rationale behind working on this project which is very much required to understand in this recovery period of Economy. 1. 4-Introduction of the Project Today, one of the major goals of financial management is maximum utilization of the capital employed for maximization of Shareholders’ value. Since capital resources are scarce and costly, companies try to employ these resources in a way that yields highest return. Of course this should be accompanied by steps taken to minimize the cost of acquired resources. Otherwise, it will not increase the shareholders wealth and the firm's value. The manager of a firm (as an internal user of financial information) and the investors and other parties (as the external users) are interested to use an appropriate performance measure in order to assess how the managerial actions affect the value of the firm. For this purpose the performance measure used, must consider at least three things, which are: the amount of capital invested, the return earned on the capital, and the cost of capital (Weighted Average Cost of Capital). So, the first question comes to our mind is that how do shareholders know that the Company with whom they have entrusted their hard earned money is efficiently utilizing it and thus, creating Value for them. We have always read the annual report of the Companies to find out information about their â€Å"top line† and â€Å"bottom line†. We also have various financial ratios and terms which act as essential factors to consider for our aid like Return on Capital Employed (ROCE), Return on Net worth (RONW), Earning per Share (EPS), Dividend per Share (DPS), D/E Ratio, and Economic Value Added (EVA). Out of all these factors EVA was introduced as an Indicator for Shareholders’ wealth maximization in 1990’s by Stern Stewart & Co. It has been a focal point for majority of the studies. Stern has claimed that EVA as a tool of financial management is not just a phenomenon and neither is it limited to only `for profit' organizations. Economic Value Added has been put to use for management performance evaluation and much more than just a measure of performance, it is a framework for complete financial management (for improving allocation of scarce capital; and for valuation of a target company at the time of acquisition). On the other hand, Market Value Added (MVA) is an indicator which measures the stock returns and shows the effect of different factors on share prices, in a particular market. While EVA is an accounting-based measure for the corporate performance of one year, MVA is a market-generated number. MVA is cumulative measure of the value created by the management in excess of the capital invested. This research is an attempt to find out whether EVA, EPS, ROCE, RONW, DPS, D/E Ratio of the companies listed in sensex explains the value accretion for the shareholders and fluctuation in sensex. 1. 5-Scope of the Research Since, BSE Sensex of India represents the whole Indian Economy. The companies listed in sensex are the representative of all the major industries of Indian Economy. Millions of investors have invested their money in the stock market. The stock market is something where investors can earn lot of money but risk is also there, because it follows fundamental of high Risk High Return. So, it is very much require to analyze the behavior of market. It means we should know in which company we should invest or we should not. So, the scope of research is to analyze the most important driver of shareholders’ value. Since, Research Division of IL Invetssmart are very much working on analyzing the behavior of stock market so that they can properly guide their customers regarding investment. This research will be a value addition for the Research Division of IL Investsmart, as it ill give an idea which factor is highly correlated with Market value of the Companies. The market value of the Companies is very much dependent on the performance of the Companies. But which performance measure should be taken into consideration by the Investors before investing in any company is very much required. So, this research will expla in whether performance measure does have any correlation with market Value added of the Companies. If it is so then which of the performance measures is strongly influencing the shareholders’ value? The research is an attempt to analyze the influence of few performance measures over the shareholders’ value and this will help in taking correct investment decision. 1. 6-Literature review Stewart (1991) had carried out a research to find out the relationship between EVA and MVA. This study was done by taking average EVA values for the year 1987 and 1988 of 613 companies in USA and then comparing them with their MVA values for 1988. The study found an r2 of 97% between the EVA and MVA value for the Companies with positive EVA while this correlation was insignificant for the companies with negative EVA values. Finegan (1991) took a sample of 450 Companies in USA and found that average value of EVA could explain 61% of the variance in MVA whereas the similar figure was 44% between the change in EVA and change in MVA. He also observed that this r2 was 47% between ROCE and MVA. Dodd and Chen (1992) found ROA as a better driver of Shares returns as compared to EVA. Stern (1993) found out that EVA is the best measure that drives the Shareholders’ value with an r2 of 50% with MVA. The next important driver was ROE with an r2 of 25% with MVA. Lehn and Makhija (1996) also studied the relationship of share returns with ROE, ROA, Return on Sales (ROS), EVA, MVA and CEO turnover. Correlation was found to be highest in case of EVA however, (EVA divided by the Cost of Capital), NOPAT (Net Operating Profit after Tax) and free cash flow and correlation with them with market value divided by invested Capital. He found NOPAT as a better indicator with an r2 of 33% compared with 31% in case of EVA. However, changes in EVA values explained 74% of the change in market value over a period of 10 years. Uyemara and others (1996) studied MVA’s correlation with EVA, Net Income, EPS, ROE, and ROA over a period of 10 years. r2 was highest technology industry for the period 1990-95 and found an r2 of 42%. EPS was judged as the second best measure of with an r2 of 34%. Kramer and Pushner (1997) established that lagged levels of NOPAT explained MVA better as compared to EVA. This correlation was found higher even when changes in NOPAT were correlated with changes in MVA. According to Biddle and others (1991), Net Income was found to be the best measure to explain Share returns. Majority of these studies were focused on US Companies. Giffith (2004) concluded that an Investor or analyst using EVA or MVA measures to forecast performance would have experienced significant losses. Ferguson and others (2005) also doubted that adopting EVA improves stock performance. JHvH de Wet (2005) analyze the database of 89 south African Companies and observed that the Standardized Cash Flow from Operations (CFO divided by the invested Capital in the beginning) had an r2 of 38% with the Standardized MVA (MVA divided by the invested Capital in the beginning), which was found to be the best driver as compared to the Standardized EVA (EVA divided by the Invested Capital in the beginning), ROA, ROE, EPS, and DPS. He also observed that Correlation of EPS and DPS for valuing the Shares. Roji George (2005) analyzed the data of 21 Indian banks for the period 1999-2003 and concluded that there is a positive relationship between EVA and productivity and negative relationship between EVA and NPA. So, what I have found that nobody has done any analysis on the 30 companies which is listed in Sensex, while these companies represent all the major Industries of Indian Economy. So, it is better to analyze these Companies’ behavior. So, this research is an attempt to bridge this research gap. 1. 7- Abbreviation |NOPAT |Net Operating Profit After Tax | |RONW |Return on Networth | |ROCE Return on Capital Employed | |D/E Ratio |Debt/Equity Ratio | |EPS |Earning per Share | |DPS |Dividend per Share | |EVA |Economic Value Added | |MVA |Market Value Added | |R |Coefficient of Correlation | |R2 |Coefficient of Determination | 1. 8-Research Objective The following are the objectives of my research: Main Objective The primary objective is to find out what drives the share ho lders’ value. Specific Objective 1) To find out the correlation of the measures like RONNW, ROCE, D/E Ratio, EPS, DPS and EVA with MVA(Market Value added) 2) To find out the most important factors or variable which explain variance in MVA and that variable should be consider before investing in any Company. 1. 9- Introducing EVA and MVA As the introductory paragraph of this paper suggests, EVA is the surplus profit after accounting for all the expenses including the cost of capital. We have always looked at the figures of Profit after Tax to find out whether a company is performing well or not. However, what we forget is that the shareholders invest money in a company in expectation of some return. So, the basis for evaluation should be whether the company has earned over and above the minimum required rate of return by the investors. If there is surplus after accounting for this opportunity cost of equity, the company is creating value for its shareholders. If not, then it is destroying value. In other words, value is created when return earned by the firm is more than its cost of capital or firm invests in the project with positive NPV. EVA can be calculated through any of the following methods:  · Increasing revenue, Reducing operating costs, Efficient utilization of assets and Raising funds at cheaper cost Chapter-2 Research Methodology Research MEthodology Quantitative Research Design has been used in this research. This analysis was carried out over a period of 6 years (2003-2008) on companies which form part of BSE Sensex. Nature of Data: Secondary Data has been used for this research. The Year wise annual data of NOPAT, RONW, ROCE, D/E Ratio, EPS, DPS, Avg. Market Capitalization, beta value of 23 Companies out of 30 Companies listed in the Sensex. Source of Data: For regression analysis the data has been collected from CMIE’s Prowess and www. bseindia. com. Research Design: Descriptive Research Design has been used as the problem is well define and key issues are known and which is to find out the most important variable which drive the Shareholders, Value. Under this Research design, Cross Sectional Study has been done. Year wise annual value of all the variables has been collected from 2003-2008 for finding the cause and effect relationship between Independent Variables (RONW, ROCE, D/E Ratio, EPS, DPS and EVA) with dependent variable (Change in MVA). The study has been done on yearly basis. Sampling: Judgment (Purposive) Sampling Method has been used for selecting Companies. The analysis has been carried out over 23 Companies out of 30 Companies listed in sensex. Though Sensex comprises 30 companies, 7 companies were eliminated because of the inadequate information available for these Companies. The reason for choosing these Companies are their reliability in terms of selection of the Companies as only those Companies are selected which have a listing history of at least 3 month with sufficient trading frequency. Sample Size: Sample size is of 23 Companies has been taken for the Year 2003-2008. The following Table shows the List of Companies: |Company Name | |Bharat Heavy Electricals Ltd. Oil & Natural Gas Corpn. Ltd. | |Bharti Airtel Ltd. |Ranbaxy Laboratories Ltd. | |Grasim Industries Ltd. |Reliance Industries Ltd. | |H D F C Bank Ltd. |Reliance Infrastructure Ltd. | |Hindalco Industries Ltd. |State Bank Of India | |Hindustan Unilever Ltd. |Sterlite Industries (India) Ltd. | |Housing Development Finance Corpn. Ltd. |Sun Pharmaceutical Inds. Ltd. | |I C I C I Bank Ltd. |Tata Motors Ltd. | |I T C Ltd. |Tata Power Co. Ltd. | |Infosys Technologies Ltd. |Tata Steel Ltd. | |Larsen & Toubro Ltd. |Wipro Ltd. | |Mahindra & Mahindra Ltd. |   | Statistical Tool : The Simple Regression Analysis and Multiple Regression Analysis have been done using SPSS to establish the relationship of MVA with EVA, ROCE, RONW, EPS, DPS, and D/E Ratio on Yearly basis. 2. 1- Limitation of Research The following are the limitation of this research: Since, the research has been carried out to find out the important factors which drive shareholders value. So, only the financial ratios which measures performance of the Companies are taken into consideration. Hence, the focus of research is on micro economic factors only. While macroeconomic factors (like GDP, FIIs, and Inflation) also does matter in creating or eroding the value of shareholders. Chapter-3 Research Analysis 3. 1- Different measures used for the analysis In this research our main objective is to find out the factors which investor should look for or take into consideration before buying share of any Company. Now it becomes very much essential to know the correlation between these Variables and the Shareholders value. Hence we have included some of the main variables like RONW, ROCE, D/E Ratio, EPS, DPS, EVA. These are the variables based on which an Investor decide to buy the shares of a particular Company. As depending upon these variables they buy the shares, the market Value of that particular Company increase which results in increase in Shareholder’s Value. Hence Dependent Variable is MVA. (For data please see Appendix-17 p. no. 84) But since MVA is Stock concept so, for applying Regression Analysis change in MVA (Market Value Added) with respect to previous year has been used. MVA=Market Capitalization-Investment (Book Value) Change in MVA= (MVAt – MVAt-1 )/MVAt-1)x100 Here, MVAt= MVA of the Companies of Proceeding Year. MVAt-1= MVA of the Companies of preceding Year Independent Variables are: six performance measures are considered as Independent Variable RONW, ROCE, D/E Ratio, EPS, DPS EVA. All these variables are flow variables. 1) Return on Net Worth (RONW) =NOPAT/Total NETWORTH NETWORTH=EQUITY+RESERVE & SURPLUSES Return on Networth measures a company's earnings in relation to all of the Investor’s it is using. RONW tells us what earnings were generated from the Networth. The Networth of the company comprises both equity and reserve and Surpluses. These types of financing are used to fund the operations of the company. The RONW figure gives investors an idea as to how effectively the company is converting the money it has into net income. (For data please see appendix-3, p. no-70) 2) Return on Capital Employed (ROCE) = EBIT/(NET Worth+Debt) Return on Capital Employed (ROCE) is a measure of the returns that a company is realizing from its capital. It calculates as profit before interest and tax divided by the difference between total assets and current liabilities. The resulting ratio represents the efficiency with which capital is being utilized to generate revenue. (For data please see appendix-4, p. no. 71) 3)D/E Ratio=Total Debt /Total Equity D/E Ratio gives the idea about the Capital structure of the Company. It shows how risky is the Investment in a Company. On the basis of D/E ratio we can have an idea of the fixed liabilities of the Company if it is using more of Debt. (For data please see appendix-5, p. no. 72) 3) Earning per Share (EPS) = PAT/The Number of Equity Shares Earning per Share is the portion of a company's profit allocated to each outstanding share of common stock. Earning per Share as the name indicates, is the â€Å"per share earning† of a company in a reported period. This is the most important factor in the fundamental analysis of a stock. This coupled with a few related ratios gives a fair idea about the worth of a stock. (For data please see appendix-6 p. no. 73) 4) DPS is the Dividend allotted to each share holders (For data please see appendix-7. P. No. 74) 5) Economic Value Added (EVA) = NOPAT-(Cost of Equity x Networth) EVA attempts to measure how much `value' was created by an organization for its shareholders, during an accounting period. It is defined as the excess of a company's after tax net operating profit over the required minimum rate of return that the investors and lenders could get by investing in other securities of comparable risk. For data see appendix-15, p. no. 82) For Calculating Cost of Equity CAPM (Capital Assets Pricing Model has been used) Ke=Cost of Equity =Rf +? *(Rm-Rf) (For data please see appendix-13, p. no. 80) Rf =Yearly Risk free Rate of Return=6% (The yield of Treasury Bill has been taken as risk free rate of return which is around 6% for the period of 2003-2008) Rm=Yearly Sensex Rate of Return=17% (Average from 1995 to 2007 comes out to be 17% – please see appendix-1, p. no. 68) ? = Beta Value of a particular Stock of a Company E= Total Networth (Equity+ Reserve and Surpluses) Since, the value of ? shows the riskiness of a particular stock with respect to market. This ? value shows riskiness on the basis of book value of a particular Company. So, these ? values of the Companies are converted into Unlevered ? and then Levered ? based on Company’s present Market Capitalization, so that an accurate and present riskiness of the stock of Company can be taken into consideration for the research The Formula is: Unlevered ? ju= ? /1+(D/S)(1-T) Here, D=Total Debt used by the Company S=Total Equity used by the Company (Book Value) T= Corporate Tax Rate (30%) Now Calculating Levered ? based on Market Capitalization using unlevered ? Levered ? = ? ju x (1+(D/S)x(1-T) (For data Please see appendix. -12, p. no. 79) Here, S=Present Market Capitalization of the Company. For an accurate result, the change in MVA and EVA has been standardized by dividing them by the Net worth of the respective Company. Standardization is done in order to find the relative value of EVA and MVA over the Net worth used by the Company. (For Stdz. EVA and Stdz. MVA please see Appendix-16, p. no. 83 and Appendix-19 p. no. 86) The collected and calculated data of ll the variables are attached in Appendices. Please see appendices for detail list. 3. 2-Regression Analysis The analysis is done in two parts. Firstly, simple regression analysis has been done between Dependent Variable (Stdz. MVA) and Independent variables (RONW, ROCE, D/E Ratio, EPS, DPS and Stdz. Eva) taking one Independent Variable at a time for all the Years (2004-2008). Year 2003 has been considered as a base year for the Year 2004 to get change in MVA in 2004 and the same process has been used to calculate change in MVA till 2008. This Simple Regression analysis has been performed in order to understand the key variables which are having high degree of correlation with MVA. After analyzing the key variables, multiple regressions Analysis have been applied with the key variables in order to analyze the impact of key Independent Variables together on Change in MVA. 3. -Year wise Result of Simple Regression Analysis from 2004 to 2008 Result of the Year 2004: | |RONW |ROCE |D/E Ratio |EPS |DPS |Stdz. EVA | |R |. 771 |. 817 |. 089 |. 332 |. 201 |. 851 | |R2 |. 594 |. 667 |. 008 |. 110 |. 040 |. 724 | |Adjusted R2 |. 575 |. 652 |-. 039 |. 068 |-. 005 |. 711 | |Standard error of Estimate |2. 47868 |2. 4331 |3. 87455 |3. 66887 |3. 81084 |2. 04402 | |Significance |. 000 |. 000 |. 686 |. 121 |. 358 |. 000 | |p-Value | | | | | | | Interpretation: From this table, it can be observed that Change in MVA is positively related with all the financial indicators but only three variable ROCE, RONW and EVA are highly correlated with change in MVA. The coefficient of correlation of change in MVA with RONW, ROCE and EVA is 0. 771, 0. 817 and 0. 51 respectively; moreover the p-value (significance) is also less than . 001. So, at 99% confidence level we can say that, these three variables significantly explain the variation in MVA. This shows that all these three variables are very much important from investment point of view. The coefficient of determination (Adjusted R2) Of Change in MVA with RONW is . 594 which means change in RONW explains 59. 4% of variation in MVA, while with ROCE it is . 652 which means change in RONW explains 65. 2% of variation in MVA and with EVA it is . 711, which means ch ange in EVA explains 71. 1% variation in MVA, the most important driver of change in MVA. So, the simple regression analysis for this year shows that these three variables are very much important while EVA is the most important variable to consider before investment. While, EPS explains 6. 8% of variation in MVA but p value is more than . 000 and DPS has a very little bit of significance and D/E Ratio is insignificant to consider as a driver of Shareholders’ value. Result of the Year 2005: | |RONW |ROCE |D/E Ratio |EPS |DPS |Stdz. EVA | |R |. 578 |. 543 |. 046 |. 323 |. 289 |. 96 | |R2 |. 334 |. 295 |. 002 |. 104 |. 084 |. 484 | |Adjusted R2 |. 303 |. 262 |-. 045 |. 061 |. 040 |. 459 | |Standard error of |2. 73331 |2. 81226 |3. 34638 |3. 17073 |3. 20682 |2. 40672 | |Estimate | | | | | | | |Significance |. 004 |. 007 |. 835 |. 133 |. 181 |. 00 | |p-Value | | | | | | | Interpretation: According to the result we can see that correlation of Change in MVA with Stdz. EVA is the highest (. 696) then with RONW (. 578) and then with ROCE (. 543) for this year. The adjusted R2 of Change in MVA with EVA, RONW and ROCE is . 459, . 303 and . 262 respectively which shows highest variation in MVA is explained by EVA that is 45. 9%. Moreover, the significance level lies between . 005 to . 010 which is less than . 010. Hence, these three variables are the most important variables to consider as standard error is also very low in comparison to other variable. While EPS and DPS has a very little significance and D/E Ratio is insignificant to consider. Result of the Year 2006 | |RONW |ROCE |D/E Ratio |EPS |DPS |Stdz. EVA | |R |. 725 |. 638 |. 025 |. 450 |. 054 |. 801 | |R2 |. 525 |. 407 |. 001 |. 203 |. 003 |. 641 | |Adjusted R2 |. 503 |. 379 |-. 047 |. 165 |-. 045 |. 624 | |Standard error of |2. 60034 |2. 0531 |3. 77240 |3. 36897 |3. 76802 |2. 25987 | |Estimate | | | | | | | |Significance |. 000 |. 001 |. 910 |. 031 |. 806 |. 000 | |p-Value | | | | | | | Interpretation: According to the result we can see that correlation of Change in MVA with EVA is the highest (. 801) then with RONW (. 725) and then with ROCE (. 638) for this year. The adjusted R2 of Change in MVA with EVA, RONW and ROCE is . 624, . 503 and . 379 respectively which again shows the highest variation in MVA is explained by EVA that is 62. 4% . Moreover, the significance level is also . 000 which is less than . 001. Hence, at 99% confidence level we can say that these three variables are the most important variables to consider and again EPS and DPS has a very little significance. D/E Ratio is again insignificant to consider Result of the Year 2007: | |RONW |ROCE |D/E Ratio |EPS |DPS |Stdz. EVA | |R |. 801 |. 795 |. 075 |. 66 |. 275 |. 896 | |R2 |. 641 |. 632 |. 006 |. 134 |. 075 |. 802 | |Adjusted R2 |. 624 |. 615 |-. 042 |. 092 |. 031 |. 793 | |Standard error of |2. 37916 |2. 40757 |3. 95859 |3. 69485 |3. 81708 |1. 76595 | |Estimate | | | | | | | |Significance |. 000 |. 000 |. 34 |. 086 |. 205 |. 000 | |p-Value | | | | | | | Interpretation: According to the result we can see that correlation of Change in MVA with EVA is again highest (. 896) the n with RONW (. 801) & then with RONW (. 795) for this year. The adjusted R2 of Change in MVA with EVA, RONW and ROCE is . 793, . 624 and . 615 respectively which again shows highest variation in MVA is explained by EVA that is 79. 3% . Moreover, the significance level is also . 000 in each of three cases which is less than . 001. Hence, out of all variables these three variables are the most important variables out of these three variables EVA is coming out to be the most important variable to consider while EPS and DPS are again having a little Significance and D/E Ratio is insignificant to consider as the driver of shareholders’ value. Result of the Year 2008: | |RONW |ROCE |D/E Ratio |EPS |DPS |Stdz. EVA | |R |. 900 |. 890 |. 152 |. 252 |. 259 |. 950 | |R2 |. 811 |. 793 |. 023 |. 063 |. 067 |. 903 | |Adjusted R2 |. 802 |. 783 |-. 034 |. 019 |. 023 |. 99 | |Standard error of Estimate |2. 70932 |2. 83630 |6. 15528 |6. 02644 |6. 01501 |1. 93688 | |Significance |. 000 |. 000 |. 490 |. 246 |. 233 |. 000 | |p-Value | | | | | | | Interpretation: According to the result we can see that correlation of MVA with EVA is the highest (. 950) then with RONW (. 900) and then with ROCE (. 890) for this year. The adjusted R2 of Change in MVA with EVA, RONW and ROCE is . 899, . 802 and . 83 respectively which shows hi ghest variation in MVA is explained by EVA that is 89. 9%. Moreover, the significance level is also . 000 which is less than . 001. Hence, these three variables are the most important variables to consider while EPS and DPS are again having a little Significance and D/E Ratio is again insignificant to consider as the driver of shareholders’ value as significance is more than . 001. Moreover out of these three, EVA is the most important and powerful variable. 3. 4-Overall Result of Simple Regression analysis [pic] Over all Result of the Analysis: Hence, my over all Analysis shows that only three financial Indicators (EVA, RONW, and ROCE) are the important driver of shareholders’ value. Out of these three, EVA is the most important Indicator. So, if a company is earning more than its cost of capital, it is adding more value to the shareholders. In second, RONW is the important Indicator, which shows that companies utilizing its shareholders’ funds in an effective & efficient manner are adding value to shareholders. Third important Indicator is ROCE which shows Companies generating higher ROCE will add value to Shareholders. SO, before investment these three variables must be considered. 3. 5- Year wise Result of Multiple Regression Analysis In multiple regression analysis I found that there is multi collinearity exist between ROCE, RONW and EVA. So, I applied multiple regression taking three independent variables at a time excluding the variables like D/E Ratio because this variable is insignificant to consider while EPS and DPS is little bit of significant. So to come out with a strong and accurate analysis it is irrelevant to ignore these two variables. Result -1: In Result-1 analysis between Change in MVA with EPS, DPS and RONW has been observed for the period of 2004 to 2008. EPS and DPS have been taken because of their little significance. In this case Hypothesis is as follows: H0: EPS, DPS, RONW are not significantly explaining variation in MVA H1: EPS, DPS, RONW are significantly explaining variation in MVA Result of the Year 2004 Model Summary |Model |R |R Square |Adjusted R |Std. Error of the | | | | |Square |Estimate | |1 |. 834(a) |. 696 |. 647 |2. 25663 | a Predictors: (Constant), RONW, EPS, DPS ANOVA(b) |Model | |Sum of Squares |df |Mean Square |F | |1 |. 742(a) |. 550 |. 479 |2. 36227 |2. 192 | a Predictors: (Constant), RONW, DPS, EPS b Dependent Variable: Stdz. MVA ANOVA(b) |Model | |Sum of Squares |df |Mean Square |F | |1 |. 831(a) |. 691 |. 642 |2. 20440 |2. 115 | Predictors: (Constant), DPS, RONW, EPS b Dependent Variable: Stdz. MVA ANOVA(b) |Model | |Sum of Squares |df |Mean Square |F | |1 |. 860(a) |. 739 |. 698 |2. 13011 |2. 501 | a Predictors: (Constant), RONW, EPS, DPS b Dependent Variable: Stdz. MVA ANOVA(b) |Model | |Sum of Squares |df |Mean Square |F | |1 |. 927(a) |. 859 |. 837 |2. 45654 |2. 493 | a Predictors: (Constant), RONW, EPS, DPS b Dependent Variable: Stdz. MVA ANOVA(b) Model | |Sum of Squares |df |Mean Square | |1 |. 875(a) |. 765 |. 728 |1. 98181 | a Predictors: (Constant), ROCE, EPS, DPS ANOVA(b) |Model | |Sum of Squares |df |Mean Square |F | |1 |. 728(a) |. 530 |. 455 |2. 41542 |1. 856 | a Predictors: (Constant), ROCE, DPS, EPS b Dependent Variable: Stdz. MVA ANOVA(b) |Model | |Sum of Squares |Df |Mean Square |F | |1 |. 764(a) |. 584 |. 519 |2. 55798 |1. 913 | Predictors: (Constant), ROCE, EPS, DPS b Dependent Variable: Stdz. MVA ANOVA(b) |Model | |Sum of Squares |df |Mean Square |F | |1 |. 850(a) |. 722 |. 678 |2. 19925 |1. 759 | a Predictors: (Constant), ROCE, EPS, DPS b Dependent Variable: Stdz. MVA ANOVA(b) |Model | |Sum of Squares |df |Mean Square |F | |1 |. 918(a) |. 843 |. 818 |2. 59745 |2. 016 | a Predictors: (Constant), ROCE, EPS, DPS b Dependent Variable: Stdz. MVA ANOVA(b) |Model | |Sum of Squares |df |Mean Square | |1 |. 888(a) |. 788 |. 754 |1. 88405 | a Predictors: (Constant), Stdz. EVA, DPS, EPS ANOVA(b) |Model | |Sum of Squares |df |Mean Square |F | |1 |. 824(a) |. 679 |. 628 |1. 99688 |2. 328 | a Predictors: (Constant), Stdz. EVA, EPS, DPS b Dependent Variable: Stdz. MVA ANOVA(b) |Model | |Sum of Squares |df |Mean Square |F | |1 |. 89(a) |. 790 |. 757 |1. 81740 |1. 914 | a Predictors: (Constant), Stdz. EVA, EPS, DPS b Dependent Variable: Stdz. MVA ANOVA(b) |Model | |Sum of Squares |df |Mean Square |F | |1 |. 923(a) |. 852 |. 829 |1. 60570 |2. 184 | a Predictors: (Constant), Stdz. EVA, DPS, EPS b Dependent Variable: Stdz. MVA ANOVA(b) |Model | |Sum of Squares |df |Mean Square |F | |1 |. 966(a) |. 932 |. 922 |1. 0292 |2. 103 | a Predictors: (Constant), Stdz. EVA, EPS, DPS b Dependent Variable: Stdz. MVA ANOVA(b) Model | |Sum of Squares |df |Mean Square |F |Sig. | |1 |Regression |759. 238 |3 |253. 079 |87. 270 |. 000(a) | | |Residual |5 5. 099 |19 |2. 900 | | | | |Total |814. 337 |22 | | | | |a Predictors: (Constant), Stdz. EVA, EPS, DPS b Dependent Variable: Stdz. MVA Coefficients(a) Model | |Unstandardized Coefficients |Standardized Coefficients | | |Collinearity Statistics | | | |B |Std. Error |Beta |t |Sig. |Tolerance |VIF | |1 |(Constant) |3. 899 |. 674 | |5. 789 |. 000 | | | | |EPS |-. 017 |. 010 |-. 147 |-1. 92 |. 089 |. 530 |1. 886 | | |DPS |-. 026 |. 065 |-. 033 |-. 405 |. 690 |. 525 |1. 905 | | |Stdz. EVA |21. 424 |1. 383 |. 933 |15. 494 |. 000 |. 982 |1. 018 | |a Dependent Variable: Stdz. MVA Interpretation: The model Summary shows that EPS, DPS and EVA together having a high degree of correlation that is . 966 with change in MVA while variation in these three variables together explains 92. 2% of variation in MVA as adjusted R2 is 0. 922. The Durbin-Watson is 2. 103 which show that variables are following a similar trend and are not scattered. The analysis shows that this year these three variables are very strongly related with Change in MVA. The ANOVA table shows F is 87. 270 and significance is . 000 which is less than . 001. It means Reject H0 and accept H1. Hence, these three variables significantly explain the variation in MVA and are very much important to consider. The coefficient table shows that there is no multi collinearity exists between independent variables because Tolerance is greater than 0. 2 and VIF is less than 5. It also shows that beta value of EVA is . 933. So, EVA is the most power full variable over here. Overall Result: The analysis of all the years results in rejection of H0 and acceptance of H1. It means these three variables are also significantly explaining variation in MVA. 3. -Overall Result of Multiple Regression Analysis Since, because of multi colinearity between RONW, ROCE and EVA it was not possible to include these three variables together in the multiple regression analysis. But as they are correlated with each other, so we can consider any one of them with the other variables to reac h at a conclusive result. Now after analyzing multiple regressions with three sets of independent variable with dependent variable which are: Set-1 Change in MVA with EPS, DPS, RONW Set-2 Change in MVA with EPS, DPS, ROCE Set-3 Change in MVA with EPS, DPS, EVA The question comes in our mind is which set is to be given preference over other. Though all the sets are highly correlated with change in MVA and there is a little bit of variation in their correlation we can consider any one set out of the three. But to conclude the analysis a Year wise Comparison has been done with the help of following graph between the three sets: [pic] From the graph we can see that correlation of Change in MVA with EPS, DPS and EVA was the highest throughout the Years. Moreover it is also increasing year by year. So, it is very much useful to consider as these three variables together act as a most important driver of shareholders’ value. While the second most important set to consider is EPS, DPS and RONW and then EPS, DPS and ROCE. Recommendations Since, my research analysis has shown that there are three most important factors EVA, RONW and ROCE which drive the shareholders’ value. Moreover a combination of EPS, DPS, and EVA together causes major variation in shareholders’ value. So, Research division of IL should focus on these factors because companies generating higher ROCE, RONW, and EVA from their business will add more value to the Shareholders’ investment. Now a day, it has become very much important for the Brokerage firms to provide valuable services to their customers specially a proper guide line that where they should invest and where they should not in order to bit the Competitors and retain customers with themselves. So, research division of IL Investsmart should guide the investors to invest in the shares of those companies which is earning more than cost of capital that is company with positive EVA moreover the companies which is effectively using the Owners fund means generating higher RONW and a higher ROCE. EPS, and DPS can be taken into consideration but can be avoided also if company is to good in generating positive EVA and higher RONW and ROCE because these variables indicate the growth of an organization. If the organization is growing and its not giving any dividend still it is good to invest in that Company, as the growth company will leads to increase in Market value and this will result in increase in Shareholders’ value. Conclusion At the end I would conclude that the year wise research done over the period of five years from 2004 to 2008 has shows that EVA is the most important driver of shareholders’ value as the correlation between EVA and change in MVA is very strong. so, a company generating positive and higher EVA is the best option to invest in because this will result in increase in market value which will result in increase in shareholders’ value. The second most important variable RONW and the third most important variable ROCE should be consider before investing in the share of any company because these two variables are also having a high degree of correlation with change in MVA. EPS and DPS alone are not the important factor to consider individually. But the combination of EPS, DPS and EVA together are highly correlated with change in MVA. According to my research analysis in 2008 it was found that these three variables together have explained 92. 2% of variation in MVA. So, the combination of these three variable can also be taken into consider before selecting a company to invest in. The analysis also shows that Correlation of change in MVA has been found to be increasing year by Year from 2004 to 2008. So, for future investment it is better to look into these ratios before investing in any company. The regression analysis shows strong correlation of change in MVA with EVA, RONW and ROCE, which is not a surprise since shareholders should value an enterprise, based on the return what they are getting on their invested oney, which proves that it doesn’t matter whether the company retains or distributed its earnings, so long it is being utilized for productive purposes. Bibliography o CMIE’S Prowess o http://www. bseindia. com/about/abindices/bse30. asp o http://www. bseindia. com/about/abindices/betavalue s. asp o http://www. bseindia. com/histdata/hindices. asp o http://neeravnagar. blogspot. com/2007/08/drivers-of-shareholders-value. html o Ali M Ghanbari (Jul’07) â€Å"The Relationship between Economic Value Added and Market Value Added: An Empirical Analysis in Indian Automobile Industry† The ICFAI Journals of Accounting Research. o Chapter 32 of â€Å"Investment Valuation† by Aswath Damodaran ———————– 65