Essay about segregation - 1571 Words

Race is an ambiguous concept possessed by individuals, and according to sociologists Michael Omi and Howard Winant, it is socially constructed; it also signifies differences and structure inequalities. Race divides people through categories which led to cultural and social tensions. It also determined inclusion, exclusion, and segregation in U.S society. Both inclusion and exclusion tie together to create the overall process of segregation — one notion cannot occur without resulting in the others. Segregation is a form of separation in terms of race that includes the processes of inclusion and exclusion. Race was the main factor that caused conflicts among people in society in the realms of culture, education, and residential. Historians,†¦show more content†¦Whites, or Anglos referred to by Menchaca and Valencia, viewed themselves as racially and intellectually superior to Mexicans. Therefore, Anglo and Mexican students were not allowed to mix even in an educational environment. Anglos controlled who were able to attend school with them and excluded those who were not considered smart based on their inclusive beliefs of a superior race. Tests and I.Q scores were used to justify segregation of these students and that led to unequal educational opportunities for Chicano students. (223) Exclusion of young students started out at an early period of time which affected their interactions - Anglos formulated barriers to divide themselves and include only their own people. As more students were segregated in schools based on Anglos belief in racial superiority, that led to Francis Galtons movement of eugenics to not only exclude minorities who were considered inferior, but to exterminate them to form the perfect breed. Segregation was believed to be the only method to maintain the pure white race; Anglos considered themselves to be exclusive because they were Gods chosen people.† They used the argument of what God would have wanted and that was to ban the intermingling of the superior and inferior races to exclude Mexicans from churches. (226) Another justification Anglos used to argue thatShow MoreRelatedRacial Segregation : Segregation And Segregation Essay1142 Words   |  5 PagesRacial Segregation â€Å"Segregation is that which is forced upon an inferior by a superior. Separation is done voluntarily by two equals.† This is an important and powerful quote said by the late Malcolm X. From 1849-1950 segregation took place for a little over a century. Just 4 years after that, in Brown v. Board of Education the supreme court outlawed segregation in public schools. This was the starting point in putting an end to segregation nationwide. However, is segregation really abolished? OrRead MoreRacial Segregation And Racial Residential Segregation3452 Words   |  14 Pages The United States has come a long way since the 1960s civil rights movement, yet many large, metropolitan areas within its borders still experience vast amounts of racism and segregation- especially in the area of residential living. The topic of this research draws attention to the issue of racial residential segregation, particularly in the city of St. Louis. Even though there are official laws against discr imination in jobs, housing, school, etc., much of this prejudice is still very prevalentRead MoreSegregation in the 1970s855 Words   |  4 Pagesorganized by color. The reality is this hypothetical world did in fact exist in the United States prior to the 1970s. Racial segregation is one of the most recognized branches of social stratification in American history. Jeannette Walls was a witness of the effects of segregation. She was born on April 21, 1960 in Phoenix, Arizona. Thus, she lived through the segregation period in the Southwest. Her books reflect experiences of her life, such as growing up in poverty and being neglected by her parentsRead MoreSegregation in the 1970s1580 Words   |  7 Pagesbe organized by color. The reality is this hypothetical world did in fact exist in the United States prior to the 1970s. Racial segregation is a vastly recognized branch of social stratification in American history. Jeannette Walls was a witness of the effects of segregation. She was born on April 21st, 1960 in Phoenix, Arizona. Thus, she lived through the segregation period in the South. Her books reflect experiences of her life, such as growing up in poverty simultaneous to being neglected byRead MoreSegregation vs. Integration1387 Words   |  6 PagesSegregation vs. Integration One of the most significant issues which the United States has dealt with for decades is the issue of racial segregation. 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Years ago, we were separated by race and even though we claim that time is over, it is not. Our country is a great example of segregation because we not only segregate by race, but by gender and sexual orientation as well. America was founded on preconceived expectations of gender and race leading to a segregation of consciousness that structures opinions around the injustices of stereotypes. For years, our country prided itself on being called the melting pot of cultureRead MoreSegregation Is The Division Of People Essay1319 Words   |  6 PagesSection I Paper: Analysis of Segregation Patterns Segregation is the division of people that share certain racial, social, and economic characteristics from other people of differing characteristics in a defined area. Segregation is mediated by action of specific groups of people leaving areas concentrated with other groups of people of differing interests. Essentially, individuals from these groups voluntarily (based on individual choice and personal preference) or involuntarily (based on externalRead MoreThe Collapse of Segregation Essay618 Words   |  3 PagesThe Collapse of Segregation Segregation and discrimination due to race was made completely illegal by 1970. 1954 saw the end to legal segregation in schools; in 1955 it was made illegal to practise segregation on busses. The Civil Rights Act was passed in 1957, which outlawed racial discrimination in employment, restaurants, hotels, amusement arcades, and any facilities receiving government money. In 1965 the Voting Rights Act was imposed to prohibit any discrimination

Charles R. Tittle s Control Balance Theory - 954 Words

The aim of this paper is to present a more comprehensive understanding of Charles R. Tittle’s control balance theory. Introduced are the assumptions about human nature and criminal behavior, hypotheses, methods for testing, empirical support, limitations, and implications. This research presents the benefits of identifying similar concepts in theories and merging them to create a broader theory. Moreover, the focus of this theory is on the claim that Tittle developed a theory that can explain both conventional criminal behavior as well as elite crime. Though more research is needed, the goal of this research is to show the positive impacts of integrating theories to create a utopian general theory. Observations, conclusions, and recommendations are described in the conclusions. Introduction The purpose of this research shall be to understand Tittle’s control balance theory and how it can be used as a sole general theory of crime and deviance. This research will focus on the understanding of the theory; and the use of concepts with similar meanings, and the fusion of them to form one common theme. Tittle’s theory can be used to explain a vast amount of deviant behavior ranging from white-collar crime, to street crime and states that the main problem is finding the balance of control. This theory is an ideal theory with massive potential because it makes sense, it is intuitive, and it is parsimonious (Akers Sellers, 2013). Findings Origins In 1995, Charles R TittleShow MoreRelatedIntegrated Theories of Criminal Justice Essay example3632 Words   |  15 PagesIntegrated Theories of Criminal Justice Abstract Two theorist and theories that have been recognized by many involved in the criminal justice field are Ross L. Matsuedas Theory of Differential Social Control, and, Charles R. Tittles Control Balance Theory. Matsuedas theory, (1) identifies a broader range of individual-level mechanisms of social control, (2) specifying group and organizational processes for controlling delinquency, (3) conceptualizing classical criminological theories as specialRead MoreSocial Controls Essay2969 Words   |  12 PagesCritically evaluate the claim that it is social controls that prevent us all from committing crime. This essay will thoroughly examine and evaluate the claim that it is social controls that prevent us from committing crimes by looking at different social control theories. Firstly we must determine what a social control theory consists of, according to Hopkins (2009) ‘social control theory is fundamentally derived from a conception of human nature that proposes that there are no natural limitsRead More Differential Association Essay3062 Words   |  13 Pagesstudies completed he began work at the University of Minnesota from 1926 to 1929 where his reputation as a leading criminologist was enhanced. At this time, his focus became sociology as a scientific enterprise whose goal was the understanding and control of social problems, including crime. (Gaylord, 1988:13) After his time at Minnesota he moved to Indiana University and founded the Bloomington School of Criminology at Indiana University. While at Indiana, he published 3 books, including Twenty ThousandRead MoreEssay on Criminological Theories13456 Words   |  54 PagesStudent Study Guide for Ronald L. Akers and Christine S. Sellers’ Criminological Theories: Introduction, Evaluation, and Applications Fourth Edition Prepared by Eric See Youngstown State University Roxbury Publishing Company Los Angeles, California 1 Student Study Guide by Eric See for Criminological Theories: Introduction, Evaluation, and Application , 4th Edition by Ronald L. Akers and Christine S. Sellers Copyright  © 2004 Roxbury Publishing Company, Los Angeles, California

Effects of Capital Structure on Profitability of a Firm

Question: Discuss the Effects of Capital Structure on Profitability of a Firm. Answer: Introduction Capital structure is the combination of debt and equity finance that a company utilizes in its operations that involves a mixture of various securities. Generally, companies can opt for alternative ways of raising capital. Some of the methods of raising capital include warrants, issue convertible bonds, or swapping trading bonds. In addition, firms can choose numerous types in order to maximize its market value (Abor, 2005). According to Azhagaiah and Gavoury (2011), the firms best choice is a mix of equity and debt finance to fund its capital operations. In situations where interest is not taxable, firms would be undecided as to whether to seek equity or debt financing whereas when interest is taxable company owners would seek maximization of the companys value by fully utilizing debt finance. Agency costs arise from use of debt financing. An agency cost is the association between the shareholders and the managers of the firm and that between the owners of debt and the shareholders (Jensen and Meckling, 1976). According to the pecking order theory, companies may opt to sell equity when there is an over-valuation in the market. This is based on the hypothesis that the managers will opt for the current shareholders concerns (Myers, 1984; Chittenden et al., 1996). Accordingly, they deny issuing under-valued shares unless the transfer value from the initial shareholders to the new ones covers the NPV of the prospect of growth. Abor (2005) concludes that new shares are issued only when the price is high than that of the real market value of the shares. Consequently, investors infer equity issuance as a sign of overpricing. In situations where external funding is indispensable, the firm will choose secured debt as opposed to debt that is risky and as such, firms issue ordinary share as a last option (Ibid). 2005) Settling on an erroneous combination of capital structure serious affects the firms performance and its survival is thereby threatened. Therefore, a companys decision to choose financing options involves a variety of policy decisions that may be beyond the control of the board of directors. Such decisions may jumpstart stock securities growth, determination of share prices as well as price regulation and interest rate. The decisions made affect capital structure, corporate governance and firm growth at the grass root level (Green et al ,2002). Booth et al. (2001) and Bas et al.(2009) postulate that awareness of capital structure strategies have relied on developed economies since they possess similar institutions. Distinct social and cultural aspects need to be investigated since levels of economic advancement contribute to how a firm chooses its capital structure. As such, this study will endeavor to establish the effects of capital structure on profitability by examining the factors that influence capital structure decisions for firms in Australias such this paper attempted to determine the effect of profitability, firm size and liquidity on capital structure... Literature review: The idea of capital structure and its relationship with profitability and firm value has always been a subject of debate among scholars. Various researchers affirm that there exists a good combination of capital structure to a firms unique needs while others argue that the degree of debt finance is not important to determine the profitability of a company. Hence, the concept of capital structure is arguably debatable. According to Brealey and Myers (2003) the selction of capital structure is fundamentally a problem associated with marketing. They argue that a firm may issue various mixtures of capital strategies but should also try to seek specific capital mix that maximizes the value of shares. Wald and Brigham (1992) add that the optimal capital structure is one that will maximize the value of shares. The capital structure concept provided an opportunity for various theories to be formulated (Modigliani Miller, 1958). In situations where a firm is new or is a going concern, it needs funds for its daily operations to achieve success. The funds sought are for the daily operations of the firm and or expansion of the company. This indicates the importance of capital in the life cycle of a company (Azhagaiah Gavoury, 2011). When capital is acquired especially from external sources, it becomes a concern to the business because it is other parties funds that are utilized that need to be compensated while the company derives full benefit from those funds. In such a case, such finances become a liability to the firm in their books of accounts (Ibid). Myers (2001) notes that there is no universally accepted theory on the choice of a firm choosing between debt and equity finance but notes that some theories have endeavored to expound on capital structure combination. He cites the trade-off theory that states, Firms seek debt levels that balance the tax advantages of additional debt against the costs of possible financial distress. The way a company funds its operations is determined by its capital structure. This can be between a choice of debt finance or equity finance (David, 1979). The theory of capital structure is attributable to Modigliani and Miller who concluded that the way a firm finances its operations has no effect on its value and that the value is not connected to the firms funding strategy. Other theories have been suggested to explain capital structure. Notably the pecking order theory, life cycle theory and the trade-off theory that have continuously been the bone of contention among critics. Interest rates are costs associated with borrowing for a specific period of time. Interest rates are normally pegged on the prevailing inflation of an economy hence a major issue for a firm when choosing capital structure strategy. Research suggests that interest rates have an effect on the firms choice of capital. According Jalilvand and Harris study of 1984 in the United States results obtained suggested that firms funding decisions are intertwined and that the size of the firm, interest rate situations and levels of stock price affect the rate of adjustment to capital structure suggesting that they are manipulated by it. According to Singh (1993), an interest rates increase, investment reduces and as interest reduces, investment activities are revamped. This may mean utilizing more debt finance. Singh concluded therefore, that there is an association between investment, utilization of debt finance and interest rate. In his study of the relationship between capital structure and profitability of listed non-financial firms in Kenya, Kinyua (2014) using regression analysis revealed that a firms profitability (using return on equity ROE as an independent variable) had a positive relationship with short-term debt. In another study, Githire and Muturi, (2015) found the short-term debt had a significant negative correlation with performance of the firm. They used the explanatory non-experimental research model using multiple regression to test and test the hypotheses. Accordingly, the empirical studies cited above found conflicting results of the relationship between capital structure and profitability based on different economies (developing or developed) and or methodologies used. For instance Kebwars study of 2014 on the effect of debt on corporate profitability using the French service sector, examined the influence of debt on profitability by using Generalized Method of Moments (GMM) on an unequal panel consisting of 2,240 French firms for the period 1999 to 2006. His analysis involved examining the linear and non-linear effect by approximating a quadratic model that considers the square of debt variable in the regression equation. The results of the study showed that there neither a linear nor a non-linear relationship between debt and profitability. This further evidenced Baum et al, (2007) study on American firms. However, Nima et al (2012) had found a significant relationship between profitability as the dependent variable replaced by ret urn of equity (ROE) and total debt. They studied Tehran Stock Exchange firms between 2006 and 2011 by measuring performance using gross profit margin, return on assets (ROA) and Tobins Q and three-capital structure ratios that included total debt ratios as independent variables. Similarly, Arbabiyan and Safari, (2009) investigated the effect of capital structure on profitability by using 100 Iranian listed firms from 2001 to 2007 and found that total debt is positively related to profitability proxied by ROE. These differing results and others not cited have prompted the researcher investigate further the effects of capital structure on the profitability of a firm. In addition, no current study has been done in Australia on the effects of capital structure on profitability therefore prompting the researcher to undertake this study. Research questions The study will be guided by the following research questions; What is the effect of long-term debt on profitability of firms listed at Australian Securities Exchange (ASX)? What is the effect of short-term debt on profitability of firms listed at Australian Securities Exchange (ASX)? What is the effect of total debt on profitability of firms listed at Australian Securities Exchange (ASX)? Research Hypotheses H0: There is no significant effect of long-term debt and profitability of firms listed at Australian Securities Exchange (ASX). H0: There is no significant effect of short-term debt on profitability of firms listed at Australian Securities Exchange (ASX). H0: There is no significant effect of total debt on profitability of firms listed at Australian Securities Exchange (ASX). Description of the Research Process Methodology As opined by Flick (2015) while conducting a research, it is important for the researcher to select the right methodology of research. It can be identified as one of the major prerequisites of successful achievement of the declared research outcome. This study will utilize data derived from the Australian Securities Exchange (ASX) website and published financial statements of joint stock companies listed on the Australian Securities Exchange (ASX) 2011-2015. Financial sector including banks and insurance companies will be excluded from this study as they differ from non- financial firms as Diamond and Rajan (2000a) point out, bank assets and functions are not the same as those of industrial firms. In reality, banks and insurance companies are controlled by regulations such as rules of depositing minimum capital. The researcher will use the following variables listed in the table below adopted from Madah et al (n.d). 1 ROE Return on Equity Dependent Variable 2 LDA Long Term Debt Independent Variable 3 SDA Short Term Debt 4 TD Total Debt 5 FIRM SIZE Log of Sales Control Variable 6 SG Sales Growth Table 1: Research Dependent, Independent, and Extraneous Variables Source: Adopted from Madah et al. Project Plan Figure 1 below shows the project plan with the various timelines with milestones for each process that will take place. Figure 1: Gantt chart Research process Figure 2 below depicts the entire research process. Figure 2: The Research Process Source: Developed by the Researcher (2016) Data collection and analysis Sample The sample size will be from all the firms listed in Australian Securities Exchange excluding banks and insurance firms. Technique: The study will be carried out using a longitudinal research design, utilizing secondary quantitative data. This type of research design involves a researcher conducting numerous observations of the same cases over a period normally for several years. It is a study that involves examining data for a long period (Cooper Schindler, 2003). The study will rely purely on accounting data of firms listed at Australian Securities Exchange (ASX). Analysis: Descriptive statistics will be carried out on the quantitative data by measuring the mean, median, mode and the standard deviation. Inferential statistics will be used to determine the cause and effect between the independent variables (Long-term debt, short-term debt and total debt) and the dependent variable (profitability). Analysis of variance (ANOVA) will be used for the extraneous variables which is this case will be sales growth and firm size. ANOVA will assist the researcher determine whether there is an association between the variables and if so, whether it is significant. This will be done by observing the p-value and where it is less than alpha level of 0.05 we will reject the null hypotheses. The researcher will also adapt the Madah et al two models One will determine the association between all the variables while the other will be a regression model. Multiple regression analysis will be used to determine the relationship between the independent variables and the dependent variable and whether the relationship is significant to reject or retain the null hypotheses. This type of analysis will be chosen since it will also reveal the degree of variability between the dependent and independent variables. An alpha or significance level of 5% (0.05) will be preferred throughout the analysis. The results of regression analysis 1203 observations of 201 firms .The regression formula adapted from Madah et al for the analysis will be: ROE it = 0 + 1 (LDA it) + 2 (SIZE it) + 3 (SG it) + ROE it = 0 + 1 (SDA it) + 2 (SIZE it) + 3 (SG it) + ROE it = 0 + 1 (DA it) + 2 (SIZE it) + 3 (SG it) + Where: ROE i,t is EBIT divided by equity for firm i in time t; LDA i,t is long term debt divided by the total capital for firm i in time t; SDA i,t is short term debt divided by the total capital for firm i in time t; TD i,t is total debt divided by the total capital for firm i in time t; SIZE i,t is total debt divided by the total capital for firm i in time t; SG i,t is total debt divided by the total capital for firm i in time t; and is the error term. Expected outcome: As the literature review shows, there are different outcomes of results on the effect of capital structure on profitability. The results of the current study are expected to shed more light in inconclusive debate of effects of capital structure on profitability of firms. The results will be beneficial to different stakeholders key among them the firm owners, stockholders, lending institutions and various government institutions. It will also provide a reference point for other researchers to explore further the effects of capital structure on profitability. As studied from the literature review it can be expected that a sheer impact of the advertisements on the customers buying decision will be established. The first hypotheses can be expected to be supported by the research outcomes. The result will provide a light on the factors those can be manipulated by the advertisements and it can be surly utilized by the entrepreneurs and future studies. References and Bibliography Arbabiyan, Ali-Akbar Safari, Mehdi, (2009). The effect of capital structure on profitability in the listed firms in Tehran Stock Exchange. Journal of Management Perspective, 33: 159-175. Azhagaiah, Ramachandran and Gavoury, C., (2011). The Impact of Capital Structure on Profitability with Special Reference to IT Industry in India Managing Global Transitions 9 (4), pp. 371392. Baum, C.F., Schafer, D. and Talavera, O., (2007). The Effect of Short-Term Liabilities on Profitability: The Case of Germany, Money Macro and Finance (MMF) Research Group Conference 2006, 61. Brealey, R. A., Myers, S. C. (2003). Principles of Corporate Finance. Boston: Mc Graw Hill. Brigham, E., and Gapenski, L., (1996). Financial Management. Dallas, Dryden Press. Cooper Schindler, D.R., (2003). Business Research Methods, (8th Edition). New York, NY. McGraw-Hill. Diamond, D. W. and Rajan, R. (2000): A theory of bank capital, Journal of Finance, 55, pp. 243 2465. Fischer, E.O., Heinkel, R. Zechner, J., (1989). Dynamic capital structure choice: Theory and tests. The Journal of Finance, 44(1), 19-40. Flick, U. (2015) Introducing research methodology: A beginners guide to doing a research project. London, United Kingdom: SAGE Publications. Githire, C. Muturi, W., (2015). Effects Of Capital Structure On Financial Performance Of Firms In Kenya: Evidence From Firms Listed At The Nairobi Securities Exchange. Available online from https://ijecm.co.uk/wp-content/uploads/2015/04/3427.pdf Jalilvand, A., Harris, R.S., (1984). Corporate behavior in adjusting to capital structure and dividend targets: An econometric study. The Journal of Finance, 39(1), 127-145. Kinyua, N.K.G., (2014). The Relationship Between Capital Structure And Profitability Of Listed Non-Financial Firms In Kenya. Kodongo, Mokoaleli-Mokoteli and Maina, (2014). Capital structure, profitability and firm value: Panel evidence of listed firms in Kenya. Modigliani, F., Miller, M. (1958). The cost of capital,corporate finance and the theory of investment. American Economic Review , 261-97. Myers, S.C., (2001). Capital structure. Journal of Economic perspectives, 81-102. Nima, S.S., Mohammad, M.L., Saeed, S. Zeinab, T.A., (2012). Debt Policy and Corporate Performance:Empirical Evidence from Tehran Stock Exchange Companies.International Journal of Economics and Finance, 4 (11), 217-24. Singh, A., (1997). Financial liberalisation, stock markets and economic development. The Economic Journal, 107(442), 771-782. Wald, J. F., Brigham, E. F. (1992). Essentials of Managerial Finance. Hinsdale,IL: The Dryden Press.