HRM & Employment Relations Essay Example | Topics and Well Written Essays - 1500 words

HRM & Employment Relations - Essay Example bloggers to the creation of content that captures the attention of the public ensures that the repetitive action of content creation and content regeneration never ceases, because the audiences are always looking to read and respond to the blogs. Therefore, blogging reinforces effective networking, without encouraging or displacing the consolidation of the blogging networks (). Nevertheless, blogging is a highly personal style of writing to a highly impersonal audience, meaning that it is an effective way of helping interpret the thought process of both the bloggers and the audience who read and responds to the blogs, considering the fact that each of these parties does it on their own terms and in their own style of understanding and reacting to the subject matter (). Then impact of blogs is that it is of the most effective ways of having an organization discuss organizational issues at lengths with the employees, meaning that blogging can highly improve the communication within an organization (). Therefore, blogging is a valuable tool for organizations, since it can make it possible for the organization to understand the feelings, thought process and reaction of individual employees regarding different organizational issues. This is because, blogging entails the application of a highly personalized mode of communication, meaning that it is easy for the organization to understand each of the contributors to the organizational blogs (). However, blogs can be a potential disaster, since they may result in the employees and the organization creating a conflict and misunderstanding regarding various subjects of blogging, which would in turn be transmitted into the physical work environment. Blogs have an influence on face-to-face communication, cons idering the fact that the interaction that is online between the audience and the bloggers is the same that will eventually be transmitted into physical communication (). This means that blogging forms the content of the

Addressing an Ethical Issue Assignment Example | Topics and Well Written Essays - 750 words

Addressing an Ethical Issue - Assignment Example During preparation of food products, it is vital that strong partnership is formed by all the parties in the production process. In this way, it will be possible for the parties to detect any issue that may result to ailment or even fatalities. A major ethical issue that faces Walmart is lack of adherence to food safety. Despite being a company that has diversified product portfolio, Walmart safety arrangements are not being upheld an aspect that is used by the competitors to face off Walmart in the market. The violations that are common in the company include expired food products, lack of proper use of sanitary cleaning equipments, and cross contamination among others. It is vital to note that despite the organization objective to increase the sales, Walmart should not do so at the expense of the consumer’s safety and health. Thus, the company should ensure that it maintains maximum safety for its products. Although it is the role of the management to ensure that the safety measures are followed by the employees among other stakeholders. Workers involved in handling, preparation and storage must ensure that they adopt food safety measures as outlined by the company policies (Unnevehr,  2003). In this way, the company will have put in place effective strategies to prevent their consumers from becoming ill. As indicated by World Trade Organization, firms dealing with food products should emulate four key strategies. First, they should prevent harming food products with pathogens spreading. Secondly, to prevent sullying the cooked products cooked and uncooked sustenance should be separated. Thirdly, a suitable life span with proper temperatures should be accorded during the cooking process to reduce the risks of pathogens. Fourthly, food should be properly stored using appropriate temperatures. A notable decision making model that I will adopt to deal with the issue of food safety is the ethics PLUS decision making model. According to this model, the firm

Research Paper Example | Topics and Well Written Essays - 1500 words

Research Paper Example In this brief research, the researcher wanted to find ways the various factors that influenced reasons for disobeying basic traffic regulations. To simplify the data collection process and make the entire project simplified, the researcher came up with a hypothesis, which the data collection and findings of the research sought to justify. The hypothesis was that â€Å"the degree to which car drivers conform to traffic regulations depends on the gender of the driver and on the presence of passengers.† To this effect, the researcher selected one particular junction at the heart of the city where a traffic light operated. The data collection procedure included the use of both observation and interview. Through the interview, it was observed that more males broke the traffic rules as compared to females. Further interview showed that the situation existed out of impunity. This is to say that most people broke traffic rules because in most cases there were no authorities to enforce the law. Introduction Traffic laws are in place basically to ensure sanity on our roads and avoid road carnage. This notwithstanding, not many drivers obey basic traffic rules (Gardener, 2009). Most often than not, drivers are seen jumping the traffic. They do this by cross their way through even when the traffic light signals for them to stop. Again, it has been noticed that not most drivers would break the traffic rule by stopping when they are not to. The researcher has a strong conviction that there are a number of factors that are responsible for the creation of this basic problem. In the estimation of the researcher, a major factor that will influence such as situation has to do with the degree of courage a driver would have that even if he beats the red light, he or she will not run into other cars. Because of this assertion, the researcher holds the hypothesis that male drivers are the worse offenders of traffic rules. Again, the passenger make up of a car would contribute to traffic law irregularities. Method The research design designed by the researcher was a survey research design. This means that the researcher selected a very large sample size and generalized the results with what prevails in all other areas. There was a specific setting for data collection and this was New Jersey. This means that are was a level of confounding where the researcher did not have to deal with people from other parts of the State. On the sampling technique, the researcher adapted the use of random sampling technique, where no specific groups of people were targeted. The approach of the researcher was to record the gender of the first one hundred (100) drivers who committed various traffic offenses at the 4 way intersection. The hundred people were therefore to constitute the sample size of the researcher. Not aware of the possible number of drivers who may conduct various traffic offenses in a day, the researcher gave himself up to five days to collect data. If he gathered one hundred (100) offenders before the first days, he would not proceed with the data collection and vice versa. Generally, the researcher used observation as a major primary data collection approach. However, in order to make the data analysis and discussion easier, the researcher went ahead to interview some drivers in the traffic lane as to why they would possibly break traffic regulations. Results and discussion The results from the data collecti

To what extent does Jane Eyre’s past affect her fate? :: English Literature

To what extend does Jane Eyre’s past affect her fate? Charlotte Brontà « uses many different ways to affect Jane Eyre’s fate. By giving Jane a difficult and tiresome childhood from a very young age it has an effect on her adult life. From a very early age Jane Eyre had a very unusual childhood. She started in a very unloving family with her aunts and cousins. She felt unloved and had a sense of refusal. Her cousin John beat her and she always hit back. When she did so, she was often caught and locked in the red room. Her auntie sent her to Loward boarding school. This was a very worrying time for Jane because already at the age of around 10 she has had no love and care in her life. The boarding school didn’t aid her in anyway. At boarding school Jane did not fit in. Again she was not cared for. She felt unsafe, unhappy, but does find her first friend. Helen Burns is a real turning point in Jane’s life. Jane really stood up for her new friend too. When Helen gets punished Jane stays with her. Little bits like this help to shape Jane into a Lady and who she will be when she is older. Jane’s new friend was a good believer in God. When Helen was very ill, Jane realises that Helen is in trouble and could die, Helen tells Jane what will happen when she dies. â€Å"I am very happy, Jane; and when you hear that I am dead, you must be sure and not grieve: there is nothing to grieve about.† This scene takes part in Helen’s bed, and is a very touching scene of the two girls bonding. The scene is clam and relaxed. By using long sentences, you can get a feel that Helen’s voice is soft, and that there is there are no interruptions. Helen goes on later to say, â€Å"I have only a father, and he is lately married, and will not miss me. By dying young, I shall escape great sufferings. I had not qualities or talents to make my way very well in the world: I should have been continually at fault† Jane and Helen have something in common here. The girls both have the sense that their families don’t love them and that they are in life on their own. But, now they have found each other, the girls are comforted that they are not the only ones. Helen has her own beliefs and opinions too. â€Å"†¦my Maker and yours, who will never destroy what He created. I rely

Seven Wonders

About a hundred years after the Statue of Zeus came the Temple of Artemis. It was built in the ancient city of Ephesus, or modern day Turkey. The architect Theodorus probably built the incredible temple, and he most likely did so to honor the Greek Goddess of the Moon, Artemis. Tragically, a man named Herostratus set the Temple of Artemis on fire along with a group of Goths in an attempt to have his name go down in history. He managed to do so and city officials tried to enforce a new law stating that if any one citizen of Ephesus mentioned his name, they would receive the death penalty; the attempt failed. All of religion at this point declined because Artemis did not protect her temple. The structure as well as the story is terrific. Measuring about three hundred feet by one hundred fifty feet, and the one hundred twenty seven columns each having a heighth of about sixty feet, one can easily see how the Temple of Artemis' means of construction are a complete mistery. Theodorus built the columns so that they had proportions to the human body. Aside from that, it was completed around 440 B. C. and took approximately one hundred twenty years to build. Such strenuous man labor classify this temple as one of the Seven Wonders of the World. Contemporary to the Temple of Artemis was the Mausoleum, which was located in Halicarnassus, or present day Turkey. It all began when Mausolus took over with Artemisia. In 353 B. C. , Mausolus died, leaving his wife Artemisia, who was also his sister, incredibly depressed. In honor of Mausolus, she decided to build him the â€Å"most splendid tomb in the known world. † The Mausoleum surprisingly managed to remain intact after over sixteen centuries. It went through many hardships and risky situations, one being the reign of Alexander the Great, and yet somehow never fell apart. It did, however, eventually collapse when a severe sequence of earthquakes passed in the fifteenth century. Unlike the other â€Å"Wonders of the World,† this building did not rely on size, but rather on beauty to catch the eyes of modern people. That is to say, the Mausoleum was so beautiful and unique that it became one of the Seven Wonders of the Ancient World.

Impact Of Tax On The Choice Finance Essay - Free Essay Example

Sample details Pages: 14 Words: 4210 Downloads: 8 Date added: 2017/06/26 Category Finance Essay Type Narrative essay Did you like this example? The different combination of funds that a firm uses to finance its activities is known as capital structure. Capital can be raised either by using owners claim (owners savings, issuing ordinary shares or by retaining the earning) or creditors claim (borrowings). In other words equity capital structure exists in two forms equity capital and debt capital. Tax affects investors and managers decision on capital structure choices as it decreases earnings. Graham (2003) states that both personal and corporate tax should be considered in order to analyze capital structure choices more accurately. Debt refers to any fund that a company borrows with the intention to payback in equal installment over a fix period of time and the principle amount at maturity. Don’t waste time! Our writers will create an original "Impact Of Tax On The Choice Finance Essay" essay for you Create order Advantages After debt has been paid, the lender has no claim over the firm. Interest paid to debt holders are tax deductible. Disadvantages Firms cash flow must be enough to repay its debt. Failure to debt repayment affects the credit rating and ability to obtain future financing. Equity Equity refers to the buying and holding of shares by individuals with an ownership interest. It can of two forms either ordinary or preference shares. Ordinary shares receive part of a firms cash flow which is known as dividend after payments have been made to debt and preference shareholders. Advantages Permanent source of finance which do not have to be paid back. Outside investors bring new ideas to explore and execute new ideas. Disadvantages Division of ownership and profit. Potential investors seeking classified business information. Debt-to-Equity Ratio (Leverage) Leverage ratio measures the different fund raising opportunities by creditors and shareholders. Firms with higher debts than equity are considered to be highly levered. Too much debt are unsafe and risky as it out weights the firms return and high level of equity indicates that the firms are not making the most productive use of its capital vis--vis leverage for obtaining cash. For a firm to be considered sensible and credit worth it should have leverage ratio between 1:2 and 1:1. Managers often act opportunistically to reduce cost by taking tax advantage of debt financing. Value relevance of capital structure choices and impact of taxation on finance has been to prior discussion. Features of capital structure Firms should choose a capital structure which is most appropriate to the firm. Such a decision can be taken only if the entire potential treat affecting the firms capital structure decisions has been well analyzed and balanced. Factors affecting capital structure are as follows: Nature of business Characteristic of company Management control Cost of finance Expected earnings in relation to interest changes Availability of cash Flexibility of capital structure Risk Capacity Determinants of capital structure Published theories and empirical evidence considers profitability, tax, NDTS, size, liquidity and tangibility are possible determinants among others in capital structure choice. Size Large firms are able to reduce transaction cost in the long run when raising capital. According to the trade-off theory, size and debt has a positive relationship as larger firms has stable cash flow, more dilute ownership and less prone to bankruptcy (Friend and Lang 1988) compare to smaller firms where there is shareholder-lender conflict (Titman and Wessels 1988). Profitability MM1 theory considered that profitability has no effect on leverage. Later on they found that since interest is tax deductible, large firms take advantage by issuing more debt. The trade off theory argues that profitable firms will borrow more to benefit from NTDS which postulates a positive relationship between profitability and leverage. Liquidity Firms with high liquidity borrow less. However, in market oriented economies a negative relationship between liquidity and leverage is expected as managers can manipulate liquid assets in the interest of shareholders by increasing the agency cost of debt. Tangibility The more tangible is a firm, the greater is its ability to secure debt (Booth et al 2001). Highly tangible firm reduces the risk of creditors and increases the value of assets in case of liquidation. However Brealey and Myers (1996) found a negative relationship between tangibility and short term debt. Tax Firms with higher tax rate should use more debt by having a higher leverage as it will have a higher income to shield from taxes. MacKie-Mason (1990) argued that Nearly everyone believes that tax must be important in financing decision, but little support has been found in empirical analysis. Non-Debt tax Shields (NDTS) The attractiveness in debt financing is that a tax relief is allowable on interest payment. The net tax gain of the firm is the amount of interest payable. Expenses other than interest payment which are deductible from tax exemption like depreciation or investment tax credit are known as NDTS. DeAngelo and Masulis (1980) argue that NDTS reduces the potential tax benefit of debt financing. Ceteris paribus, decreases in allowable investment-related tax shield due to changes in the corporate tax code or due to changes in inflation which reduces the real value of tax shields will increase the amount of debt that firms employ. Firms with lower investment related tax shield will employ greater debt in their capital structures. Modigliani and Miller (1958) (MM1) Over 40 years of pioneering work, the Irrelevance Theory of MM1 came with a simple definition that the value of the firm depends on the value of its real asset and the net cash flow generated by its assets rather than the cost of raising capital and the firms capital structure by following these assumptions[1]: Capital market is perfect (no tax or transaction cost). Investors have perfect information and homogeneous expectations. Investment decisions do not affect investment outcomes. Managers work in the best interest of investors to maximize their wealth. No bankruptcy cost. MM1 demonstrated that the firms value is determined solely by its cash flow and will remain unaffected irrespective of the firms capital structure. Hence under a perfect capital market, any combination of securities would be as good as another by allowing complete separation of investment and financing decision. The value of a levered firm (both debt and equity) (VL) must be equal to the value of an unlevered firm (only equity) (VU). VU = VL The weighted average cost of capital (WACC) for each firm will also be constant as derived below: WACC = rA = rd D/V + re E/V Where rd and re are the cost of debt and equity respectively and D and E are the market value of debt and equity relative to the firm value (V). Different firms with same WACC and cash flow should have identical values. Therefore it can be said that the only advantage of borrowing which is the cheap cost of borrowing as it is less risky to investors whereas financial leverage is the only disadvantage of borrowing. However, MM1 demonstrate that such an effect is cancel out exactly as cheap debts gives shareholders a higher rate of return but return is offset by the compensation given to shareholders resulting from higher leverage as shown below: Advantages Disadvantages Use of cheap dept Increase in cost of equity MM1 theory in the attempt to use cheaper debt is offset by the resulting increase in the cost of equity capital.[2] Non Taxed Economies MM1 theory is consistent in countries such as Kuwait, Saudi Arabia and Bahrain among others[3]which follow the principle of Shariah (Islamic ruling). Those who devour usury will not stand except as stands one whom the devil by his touch has driven to madnessÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¦. Trade is like usury but Allah has permitted trade and forbidden usuryÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¦. Allah will deprive usury of all blessing, but will give increase for deeds of charity, for he loves not any ungrateful sinnerÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¦. O you, who believe, fear Allah and give up what remains of your demand for usury, if you are indeed believers. (Surah al Baqurah verse 275-280)[4] Such countries are resistant to the payment or acceptance of interest charges (riba) for the lending and acceptance of money. Tax and interest are considered to be a taboo as there significant difference about how a debt is structured and obtained for corporate financing in the Arab League. Edward (2000) found that 95% of the Islamic financial institutions follow the Islamic principle. Certain form of predetermination of profit or mark up is acceptable to Sharia as it is considered as a capital gain but not interest. Assuming other factors remaining constant such as risk, liquidity, maturity, agency cost, bankruptcy cost and information asymmetry cost to be equal there should not be a preference for debt over equity and vice versa in a non taxed economy which satisfy MM1 theory. Modigliani and Miller (1963) (MM2) Corporation Tax MM1 theory had to be revised in order to implement tax (t) in the capital structure breaking down. The underlying problem is that dividend and interest are treated unsymmetrical in the corporate tax bill. Interest is not taxable at corporate level thus the after tax stream payable to stakeholders will affect the value of the firm and the choice of capital structure. Following the marginal tax benefit of debt financing, any additional unit of debt would decrease WACC and leave a higher after tax cash flow to equity holders resulting to a higher firm value. Following MM2 theory, in a world with corporate tax, a firm should maximize its use of debt to benefit from the interest tax shield (td)[5]. Firms with debt will have a higher value than that of an unlevered firm by an amount equal to the marginal tax rate multiplied by the value of debt as illustrated below: VU = VL + td For the same level of operating income, using the tax shield benefit (1-t) of debt financing, WACC for a levered firm must be lower than that of an all equity firm. By the introduction of corporation tax and adjusting the tax benefit from debt, the following WACC formula can be derived from MM1 theory. WACC = rA = rd (D/V)(1-t) + re (E/V) Hence, unlike MM1 proposition, it can be found that in a market there are imperfections. The choice of capital structure and firm value differ accordingly to the extent to which they are affected by the imperfections. The formula shows that the shareholders and debt holders are not the only ones to claim for firms cash flows as tax represent a claim. As leverage increases, tax claim over the firms cash flow decreases. However, bankruptcy cost is also a claim on cash flows whereby the value of bankruptcy claim increases with leverage. The following pie charts explain that if debt of a firm increases, the relatives value of the claims vary accordingly as illustrated below: As leverage increases, tax is reduced because the corporation tax system carries a distortion under which the return to debt holders is tax deductible, whereas returns to shareholders are not. Thus the advantages of using debt increases as shown below: Disadvantages Increases cost of equity Tax relief on interest Cheap debts Advantages The original cheap debt advantage continues to be offset by the increase in the cost of equity when debt is used. Corporate and Personal Tax Using the arbitrage concept MM demonstrated that if the value of a similar asset is sold at different prices for a levered and unlevered firm then an investor can make an arbitrage profit (buying undervalue and selling overprice asset). An investor is taxed differently on his income from interest, dividend and capital gain. Equity holders are taxed twice both at corporate level and personal level whereas debt holders are taxed only at personal level. A rational investor would act differently on their choice of investment to avoid tax. Following the cash flow stream accruing to equity holders with interest tax, corporate tax (rc) and dividend tax, the following equation can be used to represent the present value of a firm. VL = VU + D{1- (1-rc)(1-re)} (1-rd) The second term on the left shows the taxation gain from debt that a firm would benefit. MM showed that the value and cost of a firm is unalike with and without tax. Diagrammatically, it can be illustrated as follows: Non Tax Firm Cost of capital re Cost of equity rA WACC rd Cost of debt D/E Tax Firm Cost of capital re Cost of equity rA WACC rd Cost of debt D/E The WACC of a taxed firm tend to decrease towards the cost of debt because of the existence of marginal tax benefit of debt financing which reduces cost of raising capital. The decreasing WACC shows that a firm should borrow as much as possible. Being a rational investor or firm manager, there should always be a preference for debt over equity by decreasing tax liability and maximizing return. If the company uses share capital to raise finance then it will be foregoing the advantage of borrowing. The advantage of borrowing as the present value of tax saving from interest payment is known as the tax shield. It is found that when corporation tax was introduced in the in the revised theory, the value of the geared and ungeared companies differs by the amount of tax shield. Apart from tax there are other factors such as financial distress, agency cost and information asymmetry which are associated with the use of debt and influence the value of levered firm. Static Trade off Theory The trade off theory stipulates that there exist an optimal capital structure. When firms take decision about financial leverage, they must weigh the value enhancing or reducing effect on leverage by balancing the advantages and disadvantages of an additional unit of debt. Among the advantages include the interest tax shield of debt[6]which is unpaid at corporate level and disadvantages include the cost of financial distress[7](PV). Financial distress occurs when a firm has lower or negative earnings during economic slowdown. It includes cost such as: Direct cost such as lawyers fees, court fees and administrative expense that absorb a large part of the firms value. Indirect cost are non managerial actions impose by customers, suppliers and capital providers if the firm doesnt go into bankruptcy. The cost incurred during the time interval for the bankruptcy cases to be settled as over time the value of the asset will be depreciated. Financial distresses are all the administrative and legal cost that arises whenever the credit worthiness of a firm is in doubt which can reduce its market value. Hence the value of a levered firm will be as follows: VL = VU + td PV The optimal capital structure is any point where the value enhancing effect completely offset the value reducing effect by increasing financial leverage. In other words it is the optimal point where the value of capital structure is maximized as shown below: Market value of firm Maximum Value of Firm Cost of Financial Distress PV of Interest Value of Levered Firm Tax Shield Value of Unlevered Firm D/E Cost of Capital Cost of Equity WACC Cost of Debt Optimal Debt/ Equity Ratio D/E From the above diagram it can be seen that as cost of equity is assumed to increase at an increasing rate to leverage, cost of debt will rise only after significant leverage has occurred. This occurs because the WACC of equity financing does not offset entirely the use of cheaper debt. Unlike the MM theory (1958) that argue that a firm can take as much debt as it wants, the trade off theory postulates that the optimal debt usage is any point where any additional would cause cost of financial distress to increase by an amount greater than the benefit of additional tax shield. Agency cost theory Jensen and Meckling (1976) found that the optimal capital structure will be determined by minimizing the cost that arises by firms owners due to conflicts between debt holders and equity holders and between managers and equity holders. Agency cost arises due to the fact equity holders have limited liability while debt holder receive a fixed maximum return. When a firm is in financial distress, shareholders encourage management to expropriate fund from debt holders to equity holders. Debt with interest payments reduces the agency conflict between shareholders and mangers as when interest payment are due managers are stuck in legal procedures, thus they will operate in such a way that will maximize shareholders wealth. Hence managers stipulate the optimal capital structure when agency cost is minimized. Pecking Order Theory Pecking order theory is based on the asymmetric information problem (Myers and Majluf 1984). Asymmetric information arises due to the fact that managers are better informed in terms of the firms current earning and future growth opportunities than outsiders investors. There is no optimal capital structure as debt ratios will change according to investment opportunities. Firms opt mostly for internal financing whenever possible and have a preference for debt over equity as it is less affected by information asymmetry (Peireson et al 2002). Internal funds can be raised without any cost and any disclosure of prior information. Managers will choose to issue debt whenever investors undervalue the firm and issue equity in periods of high market performance and vice versa. Hence the debt/ equity ratio is observed to have a direct relationship with market performance. Such a theory mostly lays emphasis on the cost of issue as it takes the lowest financing to finance investment decision and t hen moves towards the highest one. Thus it can be justify that highly profitable firms will generally tend to borrow less and aim to have a low leverage ratio because they dont need external finance. The theory further stipulates that if surplus cash generated cannot be reinvested, it can be used to pay-off debt rather than paying dividend on short terms or purchase back shares. In other words, it ensures a stable dividend policy rather than consistency in the gearing ratio, signifying that an optimal level of gearing is not a priority. Empirical Evidence Empirical studies have generated many attempts to explain the determinants of capital structure. Using the fourteen European communities, Gleason et al (2000) found that capital structure is influence by the legal environment, tax environment, economic system and technology capabilities. Based on an international basis it is found that the surrounding environment, macro economic conditions and firms economic factors affect financing decisions. Opler and Titman (1997) try to determine the relative importance of debt to equity choice by comparing firms in the US. In their study carried out in the period 1976-1993, they found that firms behaviour could be explained by the static trade-off and pecking order theory to explain the choice of capital structure. Titman (2001) found that firms with low leverage and high level of profit will issue more debts which are in accordance to the tradeoff model. Furthermore, they confirm that there is a negative relationship between the market-to-book ratios and the debt to equity choice. This is due to the fact that as the probability of issuing debt to equity declines with the firms market-to-book ratio, firms with high market-to-book value will have a high target ratios and vice versa. A study done by Manos and Ah-hen using 24 nonfinancial listed firm for the period 1992-2000 in Mauritius found out that the determinants of capital structure are in favor of the pecking order theory that is firms prefer internal financing when available and for external financing there is a preference of debt over equity, thus rejecting the trade off theory. They also found that there is a preference for long term finance in the Mauritian capital market with respect to age, growth, risk and profitability. Singh and Hamid (1992) selected 50 manufacturing firms quoted on the stock market from nine developing countries namely Mexico, India, Pakistan, Turkey, Korea, Thailand, Malaysia, Jordon and Zimbabwe. They found that the firms were relying heavily on external funds and new issue of shares to finance new asset. In the 1980s, Korea had 40% of equity in its capital structure, Jordan 50% and Turkey 60%. Such a result was unexpected as it goes against the pecking order theory which stipulates that firms should prefer internal source of finance as opposed to external ones and if investment requirements are greater than retained earnings, they should prefer debt and as a last resort issue equity to raise capital. Based on a study of 800 non-financial firms in 7 emerging countries namely Argentina, Brazil, Indonesia, Malaysia, Mexico, South Korea and Thailand for the period 1980-1990, Schmukler and Vesperoni (2000) found that larger firms have a lower level of short-term debt, a higher lever of long-term debt and hold debt of higher maturity. Firms with higher level of profit are positively correlated with the level of internal financing thus holding shorter debt maturity and have a low leverage. Such finding is consistent with the pecking order hypothesis. Theoretical arguments of tax sensibility for capital structure are very strong, Mac Kie Mason (1990); Trezevant (1992); Dhaliwal er al (1992); Shum (1996); Graham and Tacher (2006), found that there is a significant tax effect on the debt policy of firms. Firms with low corporation tax will have a lower amount of debt. , Hahn, Ofer, and Sarig (1992) find that increasing tax rates at corporate level make debts more attractive. Graham (1998) in his paper found that corporate tax and personal tax has a significant importance and affects corporate financing decision. There exist a negative relationship between debt ratios and tax rates when taxes are measured with after-financing income because interest on debt are tax deductible at corporate level thus reducing the expected marginal tax rates, while Schulman et al. (1996) found that debt ratios with respect to the before financing tax rates are positively correlated across a sample of 51 countries. Firms with high income tax will shift to more debt in their capital structure in order to decrease the tax liability. Instead of using just the past paid taxes, Givoly, et al. (1992) tested the effect of the Tax Reform Act (TRA) 1986 in respect to the change in leverage of the US firms. He used the support of basic theories of capital structure and found that firms decrease leverage whenever there is a drop in tax rate is greater with an effective tax rates. He found that the relation of debt use is positively correlated with the marginal tax rate and firms with statutory tax rate greater than marginal tax rate will issue more debts with the expectation of to decrease tax bill. DeAngelo and Masulis (1980) worked on the effect of non-debts sources of tax shield and found that the tax shield benefit of debt can be derived only after other tax shield benefit such as depreciation, losses and investment tax credit has been exhausted. Hence the tax shield benefit of debt is moderated by the presence of non-debt tax shield benefits. Booth, et al (2001) tested whether capital structure theory is in line across countries and found as the previous empirical researcher that across countries debt ratio are negatively related to tax rates. Their attributes were based on the possibility of higher profitability rather than emphasizing on the debt tax shield potential. However Antoniou,et al (2002) used a panel of data from Britain, France and German and found that capital structure decision is based on a number of variables than tax. Using the non debt tax shield (NDTS) effect on debt policy, Givolry at al (1992) and Graham (1996) found that there is a negative relationship between the level of a firms debt and the amount of NDTS[8]. Later on, Bathala et al (1994) found a positive relationship between a firms level of debt and the amount of NDTS which is according to the traditional theories. Thus the positive relationship suggest that NDTS affect debts, that is the higher is NDTS, the higher will be the value of the firm. Draper and Huizinga (2001) analyzed the corporate tax rate on the cost of capital and investment to determine the optimal capital structure of firms located in Netherlands. In this paper they found that a reduction in corporate tax rate reduces the cost of capital and that corporate tax has a direct effect on profit. Thus a decrease in corporate tax rate has either a positive, negative or neutral effect on the on the marginal incentive to invest if capital cost is less than fully, more than fully or fully deductible from corporate taxable income. In Netherland, since capital cost is less than fully deductible from corporate taxation, a decrease in corporate tax rate will increase investment. However, an increase in corporate tax will discourage new firms to invest or invest elsewhere. Feltenstein and Shah (1993) used an equilibrium model to address the issue of investment tax credit in Pakistan. Firstly, they wanted to estimate the effect of the increasing investment tax credit from 15% to 30% and found that there was a significant increase in inflation rate. Secondly, they retained the original investment tax credit and reduced the corporate tax rate and found that capital formation increased. Limited studies are done on the effect of personal tax on the choice of capital structure. Givoly et al (1992) found a negative relationship on firms leverage while Graham (1996) observe that personal tax of debt and equity has no effect on debt. Recently in 2008, Huizinga, Laeven and Nicodeme found a direct relationship between financial leverage, local tax and tax differential across countries of European multinationals.

The Healthcare System Of The United Kingdom Health Care...

The Health care system consist of a huge organization and that has become an increasingly popular subject. There has been much debate on the best ways to implement changes that can provide more access to healthcare, better quality and reduce cost. According to Sultz and Young (2014) consuming over 17% of the nation’s gross domestic product, exceeding 2.7 trillion dollars in cost, and employing a workforce of over 16 million, it is understandable that health care occupies a central position in American popular and political discourse (p. 1). This large organization employees many individual and helps delivery healthcare services to even more people. The government along with other parties from the public and private sphere work to reform healthcare services and improve efficiency and quality in the healthcare delivery system. Many times the health care system of the United States is compared to that of other developed countries to implement certain ideas while reframing from ot hers. In particular I will be discussing the comparison of U.S healthcare systems to that of the U.K and Sweden. The United Kingdom health care system National Health Service (NHS), deals with factors such as expenditures, source of financing, access, and quality. According to Office for National Statistics (2015) the UK expenditure from both private and public sector consisted of 150.6 billion in 2013, GDP at 8.8%, with the total spending per person of 2,350 in 2013 for healthcare expenses. TheseShow MoreRelatedThe Healthcare Delivery System Of The United Kingdom1232 Words   |  5 PagesThe Healthcare Delivery System of the United Kingdom The United Kingdom (UK) lies in mainland Europe and is composed of Great Britain (England, Scotland and Wales), Northern Ireland and some smaller local islands. The United Kingdom is surrounded by the North Sea, the Atlantic Ocean, the Irish Sea, and the English Channel. The United Kingdom is a constitutional monarchy with Queen Elizabeth II as the head of the sovereign state. The prime minister is the head of the government. According toRead MoreEssay On Healthcare System997 Words   |  4 PagesThe United States has had extreme difficulties in maintaining a healthcare system that benefits all citizens of the United States. The role of the government to ensure that all citizens receive the best care possible has not yet been fulfilled. There are many issues, in regards to the price, types of coverage and the accessibility to providers. Most providers are not allowing some insurance because of not getting paid from the insurance companies. In the United Kingdom, the healthcar e system is aRead MoreUnited States Health Care System1528 Words   |  7 Pages United States health care system compared to the United Kingdom The United States health care system is one of the most expensive health care systems in the world, yet ranks last in performance when compared to other wealthy countries health systems. Among those countries the United Kingdom ranks number one because it is more effective and accessible. The United Kingdom’s universal coverage allows for a higher performance of quality care, access and efficiency as compared to the US which ranks atRead More Why We Need Universal Healthcare Essay1586 Words   |  7 PagesWhy We Need Universal Healthcare Many would argue that here, in the United States, we have the best healthcare in the world. We benefit from the most up to date medical technologies, medications, and services. 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These deaths are caused by mainly old age related ailments and other chronic diseases like heart attack, stroke, dementia and respiratory diseases. This data is as gathered by the National Health Service (NHS), which constitutes four of the health care systems that is publicly funded in the United Kingdom. Of the deaths mentioned previously, the highest number of 58% occurs mostly in the NHS hospitals. The rest occur at home, caregiving institutions, hospices and other areas (Gray, 2011). TodayRead MoreThe United Kingdom, Switzerland And Germany1470 Words   |  6 PagesMost people who talk about healthcare, really do not know what health care is to its full extent. Let alone understand how a nation health care system operates or how each political party wants the nation healthcare to be ran. Healthcare is the maintenance and improvement of the of a individual through medical provisions. But defining a operations of a healthcare within a nation can differ. Ideally the operations involve citizens paying taxes for government health care with the alternative of payingRead MoreThe United States And Universal Health Care1582 Words   |  7 PagesThe United States and Universal Health Care: Should the U.S. Make the Switch? The United States has one of the largest, most complex health care systems in the world. Although the U.S. is among the wealthiest nations in the world, it is far from the healthiest and falls behind other developed nations in terms of healthcare. Mexico and the United States are the only members of the Organization for Economic Co-operation and Development (OECD), which has 34 members in total, which do not have universalRead MoreChallenges for the United Kingdom Health Care System758 Words   |  3 PagesThe National Health Service (NHS) is the universal healthcare system for the United Kingdom and provides more than 80 percent of the total healthcare services. It is largely free at the point of use. An 11 percent tax on employees and a similar one for employers generally finance it. There are some private providers that are paid by supplemental private insurance companies or by the patients (Bang, 2010). The United Kingdom is facing many challenges on how to support and imp rove the NHS so itRead MoreSocialized Healthcare Vs. Private Healthcare982 Words   |  4 PagesSocialized medical systems are designed to disregard the insurance industry and disregard income while providing health care for all. Healthcare in the United States is constantly changing and advancing, which requires the cost of health insurance to rise. The idea of socialized medicine is prominent, until the aspects of socialized medicine are brought to attention. Every aspect of a socialized health care industry is controlled and powered by the government; most doctors, nurses, medics and administrators