Effect of Macroeconomic on Stock Return

Effect of Macroeconomic on Stock Return This research paper is conducted to measure and analyze the effect of macroeconomic on stock return of industrial product sector as compared to performance of Kuala Lumpur Composite Index. Several variables will be used to identify the relationship between the dependant variable which are three pre-specified macroeconomic variables the term structure of recession, interest rate, exchange rate and stock price movement that might give impact to the independent variable which is listed stock of industrial product sectors components in Kuala Lumpur Composite Index. Holding Period Return method will be used to measure the impact dependent variables to independent variable in this research. Secondary data will be used for this research paper, which are about 50 companies in industrial product sectors components that listed in Kuala Lumpur Composite Index; will be acknowledged as the sample for the previous year period from 2005 until 2009 to measure the performance of the sector in economi c condition during the period. It is expected that during the period, the industrial sectors performance that listed in Bursa Malaysia maybe will be affected by the economic condition during the period which will give impact on their stock return. CHAPTER 1 INTRODUCTION 1.0 INTRODUCTION Macroeconomic and stock prices are difficult to predict most of the times. These changes it appears that reflect the shifting demand for that stock or changing facts that it because of expectations of a companys profitability or some of government policy that effect on stock. Therefore, investors speculate how stock are determined most of them will look for to inexpensive share or expensive share with low price earning. Shares in most large established corporations are listed on organized exchanges like the Bursa Malaysia or Shanghai Stock Exchange. Every time a stock is sold, the exchange records the price at which it changes hands. If, a few seconds or minutes later, another trade takes place, the price at which that trade is made becomes the new market price, and so on. Organized exchanges like the Bursa Malaysia will occasionally suspend trading in a stock if the price is excessively volatile and also must legalize trade according their regulation, if there is a severe difference between supply and demand or if they suspect that insiders are intentionally manipulating a stocks price. But in ordinary circumstances, nobody is on purpose to control price. The market price of a stock is basically the price at which a keen buyer and seller agree to trade. Price is volatile when the enormous volumes of stock traders are made awake of professional traders who buy and sell shares each and every one day long. Since these traders do not grab stocks over the long pull, they are not terribly interested in such long-term considerations as a companys profitability or the value of its assets. Or rather, they are interested in such factors mostly trusty as news that would affect a companys long-term prospects might cause other traders to buy the stock, causing its price to raise. If traders believe that others will buy shares, then he/she will buy as well, hoping to sell when the price rises. If others believe the same thing, then the wave of buying pressure will, in fact, cause the price to rise. This trend will continue forever. When we look back to the famous economist John Maynard Keynes which has revealed the economic principle had compared the stock market to a competition then popular in British tabloids, in which rival had to look at photos and choose the faces that other contestants would choose as the prettiest. Each contestant had to look for photos â€Å"likeliest to catch the imagination of the other competitors, all of whom be looking at the difficulty from the same point of observation. similarly, stock traders try to speculation which stocks other traders will buy. The successful trader is the one who anticipates and outfoxes the market, buying prior to a stocks price rises and selling before it falls. 1.0.1 Screening criteria of KLCI Investor can only invest in stocks through a stock exchange, an organized marketplace where stocks are bought and sold under strict rules, regulations and guidelines. KLCI has over 30 listed companies offering a wide range of investment choices to local and global investors. Companies are either listed on Bursa Malaysia Securities Main Market or ACE Market. The Stock Market was created by companies wishing to raise capital for their business. When someone says they have a listed company they indicate listed on Bursa Malaysia. All companies need cash to take advantage of growth opportunities. Many start-up companies however find themselves short of capital to fund expansion. One way to acquire this cash is to publicly float the company. This involves selling part of the company to private individual and institutional investors who are then able to freely exchange these stocks on an open market Most huge matter regarding to the criterias are, high market capitalization on stock itself, it reflects how much share have been issues and its price per share. Blue chip company is resistance to weak market and it has permanently growth for example nestle it has stable growth in term of profit and cash flow. 1.0.2 History of stock Market The Kuala Lumpur Stock Exchange which was incorporated on December 14, 1976 as a company limited by guarantee took over the operations of KLSEB in the same year. The Kuala Lumpur Stock Exchange Berhad was demutualized pursuant to the Demutualization Act and converted into a public company limited by shares on January 5, 2007. Upon the conversion, the organization vested and transferred the securities exchange business to a new wholly-owned subsidiary, Bursa Securities, and became an exchange holding company and were renamed Bursa Malaysia Berhad on April 14, 2007. On 18 March 2005, Bursa Malaysia made its first appearance on the Main Board of Bursa Malaysia Securities Berhad. On 6 July 2009, the Composite Index has been replaced by FTSE Bursa Malaysia KLCI index which reflect the top 30 companies in the exchange. On 4 August 2009, the exchange has combined the main board and the second board into a single market which is called the Main Market. Mesdaq is also renamed into ACE market which provides lower listing requirements. 1.1 BACKGROUND OF STUDY Every time a share in, say, nestle is traded for example, the new price is used to revalue all outstanding shares-just as the value of your home appreciates when the house down the block sells for more than a similar house sold last week. But the value of your home wouldnt be so high if every house on your block were suddenly put up for sale. Similarly, if all ten billion outstanding shares even a small fraction of them-were put up for sale, they wouldnt fetch anywhere near the current market price. (Pirie and Smith, 2003) have say that relationships between accounting information, book values and share prices have significant implications for share prices in Singapore. Foreign exchange rate and interest rate risks are important financial and economic factors affecting the value of common stocks. Research by (King and Wadhwani, 1990) found that the volatility transfer hypothesis suggests that random shocks can induce higher volatility in financial markets and because of contagion effects which are highest in more volatile markets, investors may look abroad to invest in alternative financial assets. This study was aimed to point out whether the stock price behaviors and macroeconomic variables such as foreign exchange rate and interest rate is reflected in listed company stock return in the KLCI or not. Because one of them is accounting factor and other are economic factor. 1.2 PROBLEM STATEMENT The problem studied in this research is about the movement of the stock market and selected individual stock prices for investors usage. Caution should also be exercised in interpreting their results as the period of study includes the 2008 financial crises. It is possible that the severity of the crisis has influenced the statistical results. These papers empirically compares and see the share price of the companies before, during and after the recession and it covers only two macroeconomic factor that have give some effect to the stock return. During this period we will see the flow of the price movement in the market by using fifthly (50) listed company in property sector. Previous studies on stock market by Deshmukh et al (1983) banks can affect their exposure to interest rate and foreign exchange rate changes when they act as financial intermediaries for their clients. As such, their role as financial intermediaries can affect the sensitivity of investor assets and liabilities to interest rate and foreign exchange rate changes 1.3 RESEARCH QUESTION This research is conducted to inquire: 1.3.1 If there any changes of stock return on listed KLCI industrial company effect of macroeconomic? 1.3.2 If there any changes of stock return on listed KLCI industrial company effect of volatile market share price? 1.3.3 Which investment could offer better stock return to investor if using Holding Period Return? 1.4 RESEARCH OBJECTIVES This research is conducted to determine: 1.4.1 Macroeconomic factor have give impact to the stock return. 1.4.2 Changes of share price have give impact to the stock return. 1.4.3 The investment that could offer better performance using Holding Period Return. 1.5 SIGNIFICANCE OF STUDY This research is an observed study upon the macroeconomic factors and changes of stock price that give impact to the stock return of industrial product listed in KLCI. The study is significance for researcher, government and investors. Researchers can be benefit from this study by the information and acknowledge they from the previous to the current and future trend of movement either macroeconomic factors and changes of stock price that give impact to the stock return. As for the government, they can assist in organizing and stabilizing the economy to make the market will always gain some profit to the investors in attract more investment to come to Malaysia. Investors will gain benefit by knowing the current condition of Malaysia stock market as well as the shares before they can invest their pool of money in Malaysia especially in the industrial company. 1.6 SCOPE OF STUDY Macroeconomic and share price is the environment in which all firms operate. The ability to forecast the macroeconomic and share price can translate into spectacular investment performance. Some of the key economic variables are inflation, interest rate and exchange rate. In economics, a recession is a business cycle contraction, a general slowdown in economic activity over a period of time. During recessions, many macroeconomic indicators vary in a similar way. Production as measured by Gross Domestic Product (GDP), employment, investment spending, capacity utilization, household incomes, business profits and inflation all fall during recessions; while bankruptcies and the unemployment rate rise. Recessions are generally believed to be caused by a widespread drop in spending. Governments usually respond to recessions by adopting expansionary macroeconomic policies, such as increasing money supply, increasing government spending and decreasing taxation. High interest rates reduce the present value of future cash flow, thereby reducing the attractiveness of investment opportunities. For these reason, real interest rate are the key determinants of business investment expenditures because sensitive to interest rate affect to interest payment. The foreign exchange market or currency market or Forex is the market where one currency is traded for another. It is one of the largest markets in the world. Some of the participants in this market are simply seeking to exchange a foreign currency for their own, like multinational corporations which must pay wages and other expenses in different nations than they sell products in. However, a large part of the market is made up of currency traders, who speculate on movements in exchange rates, much like others would speculate on movements of stock prices. Currency traders try to take advantage of even small fluctuations in exchange rates. In the foreign exchange market there is little or no inside information. Exchange rate fluctuations are usually caused by actual monetary flows as well as anticipations on global macroeconomic conditions. Significant news is released publicly so, at least in theory, everyone in the world receives the same news at the same time. This study takes place in the subsistence of macroeconomic and changes of stock price in Malaysia as its field is the one to be explored. Moreover 50 listed companies were acknowledged as the sample for the previous five year period. The data of this research will be obtained from DataStream. 1.7 LIMITATION OF STUDY There are several drawbacks in pursuing this research. It includes: 1.7.1 Scope of study The research reference is restricted in the scope of Malaysia due to the field of study. As we know, Malaysia is an emerging country, thus the performance is still not matured compared with the developed countries, like the United States. 1.7.2 Period of the study This study is conducted by using the data from 2005 to 2009. Approximately 50 form 100 companies that listed in Bursa Malaysia, but not all the companies data was provided in that certain period. This constraint is affecting the calculation of portfolio performance. The length of the study also affected this study indirectly. This study used to use five years period of time. The result for five years study would be different if this study managed to use the longer period of time. 1.7.3 Secondary data In this study, we used the secondary data gathered from DataStream, Bursa Malaysia and the other articles references. Some of the data were not up to date to be the good references. For example, when we referred to Bursa Malaysia, some of the data is not currently in use and in DataStream; the problem was some of the data was not available (N/A). It became a limitation to the study because we cannot get the accurate result. 1.8 DEFINITION OF TERMS 1.8.1 KLCI Kuala Lumpur Composite Index or Bursa Malaysia is place where all sector company list their stock to get capital gain from investor that buy their stock. 1.9 SUMMARY There are many reason why this research been conduct but to know the real effect to the stock return many variable been use to meet the objective. For example interest rate, exchange rate, recession and stock price movement is the variables that have effect to the company or investor stock return. CHAPTER 2 LITERATURE REVIEW 2.0 INTRODUCTION Macroeconomics is a branch of economics that deals with the performance, structure, behavior and decision-making of the entire economy, be that a national, regional, or the global economy. Along with microeconomics, macroeconomics is one of the two most general fields in economics. Researcher study aggregated indicators such as GDP, unemployment rates, and price indices to understand how the whole economy functions. Macroeconomists develop models that explain the relationship between such factors as national income, output, consumption, unemployment, inflation, savings, investment, international trade and international finance. In contrast, microeconomics is primarily focused on the actions of individual agents, such as firms and consumers, and how their behavior determines prices and quantities in specific markets. 2.1 GENERAL LITERATURE REVIEW 2.1.1 MACROECONOMICS The effect of macroeconomic fundamentals on stock market volatility has generated a lot of interest. Research by Liljeblom and Stenius (1997) find that it is argued that if the value of corporate equity on the whole depends on the health of the economy, then uncertainty in macroeconomic conditions would affect volatility in stock returns assuming consistent discount rates. Studies have also shown that stock market volatility is driven by uncertainty in macroeconomic fundamentals Fama (1981, 1990), Fama and French (1989) and Chen et al. (1986). It is argued that there is an inverse relationship between interest rates and stock returns. Thorbecke (1997) and Smal and de Jager (2001) observe that a reduction in interest rates induces an injection of liquidity into the economy. This extra liquidity could be channeled to the stock market, driving up the demand and prices of stocks. Patelis (1997) notes that interest rate changes are helpful in predicting stock market returns over a long period. Thus, there is evidence to conclude that interest rate policies should also target stock market price movements. Goodfriend (2003) also notes that, since there is no stable correlation between stock-price returns and short-term interest rates, it would be difficult for interest rates to target stock-price changes appropriately. Bernanke and Kuttner (2003) also note that stock markets do not react much to interest rate changes. Throughout the years, the global economy has been transformed from a simplified financial architecture to a complex intertwined set of financial systems. From the Bretton Woods system to the advent of flexible exchange rate systems in 1973 until the present days, the environment of international markets had experienced substantial changes in the form of excessive variability in exchange rates, greater capital mobility and punctuated by a series of financial crises worldwide in recent years. Meese (1990) who studied the currency fluctuations in the post-Bretton Woods era found that the changes of macroeconomic variables alone could not explain major currencies movements. MacDonald and Taylor (1994) however noticed relationships between macroeconomic variables and exchange rate. A recent study by Rapach and Wohar (2002) meanwhile produced mixed results for the monetary model of exchange rate determination. In December, 2007 economic recession that began in the United States spread much of the industrialized world, and has caused a uncertainty of economic activity. This global recession has been taking place in an economic environment characterized by various imbalances and was sparked by the outbreak of the financial crisis of 2007–2009. However, Mitchell and Netter (1989) argue that the three-day decline preceding the crash was a large enough decline that it became the fundamental news and that shook the market. The theoretical model of Jacklin et al. (1992) (among others) shows how a surprise significant drop in the market could have provided information to the market that would directly lead to a crash. Among all macroeconomic factor stock price movement is also effect by changes in economic environments. CRR (1986) results are tested to see whether the factors priced in the US market are applicable in Turkey stock market, with adding new variable unemployment rate, because we expected a relation with the stock returns. 2.2 THEORETICAL FRAMEWORK Four factors are selected to test the relationships of these factors and stock return. The factors are recession, interest rate, exchange rate and stock price movement. 2.2.1 Recession Recession is one of the macroeconomic factors that effect to the listed company stock return in KLCI. Some of the researcher say that recession have give negative impact to stock return but some researcher found that recession is no relation with stock price. CRR (1986) shown that the tested macroeconomic variables do not affect the share price in the UK stock market. 2.2.2 Exchange Rate. Exchange rate is most been use by investor to do transaction to buy stock in market, because of that exchange rate is consider one of the factors that effect to the stock return. Movements of exchange rate are always a concern for various parties. In international currency markets, exchange rate plays a significant role and the variability of exchange rate, whichever way it sways, tends to give a significant impact on the economy. 2.2.3 Interest Rate. Interest rate also one of the factor that give impact to the stock return because some researcher say that interest rate give negative impact to the stock return. Anthony Kyereboah-Coleman and Kwame F. Agyire-Tettey (2008) mention that there negative real interest rates for extended period. 2.2.4 Stock Price Movement. Stock price move is most related to the stock return because every time changes in stock price effect to the outcome of stock return for investor investment but some of the researcher say that there is no effect on stock return. For example Martinez and Rubio (1989) tested the Spanish market return and they found that there were no significant pricing relationship between stock returns and the macroeconomic variables. 2.3 SUMMARY Literature review is the part where it shows where it show whether the variable will be strongly acceptance or not. From the previous study that has been done it has shown that, most of the variable has its own importance not only in affecting some issue but also in solving it. This literature reviews shows the effect of this study on the stock return as the dependent. It also has many researches done with the difference result. CHAPTER 3 METHODOLOGY AND DATA 3.0 INTRODUCTION This chapter discusses the research methodology used in the study. Methodology is one the important method that had been use to test the hypothesis on this study in order to get the finding at the end of the study. Research design and research methodology is most of the important part for this study since it provide a lot of useful information on how to get the data, how to conduct the survey and provide additional information in order to get better result and finding for this study. This chapter explains how the data for conduct the study is collected and carried out. It also explain on the method that is going to be use to get the finding at the end of the study. It also focus on the data sources, sample involved in the study and the methodology to be use in this study. In this study the variables that had been used was economic recession, exchange rate, interest rate and stock price which collected on the monthly basis for the period of 5 years ended in December 2005 until December 2009. This study consists of 50-industrial product firm and using time series period from 2005 to 2009. Focus for this study was more on the Regression Model analysis to test the finding. Since this study was investigate and identify the relationship between macroeconomic and stock price movement to profitability so using the regression data analysis model had done it for the past 5 years.. There are several key items such as data collection method, sampling frame, sources of data, variables and measurement, research design, theoretical framework, hypothesis statement, data analysis, and treatment which will clarify in detail in this chapter. 3.1 DATA COLLECTION The price indices at monthly frequency are collected for sectors in Bursa Malaysia: industrial product sector. All the closing prices of these sector indices sourced from the secondary data from Thomson Financial DataStream over five-year period from year 2005 to year 2009 (5 years). Meanwhile, for the independent variables of recession rate, exchange rate, interest rate and stock price will be extracted from Thomson Financial DataStream and Bank Negara Malaysia official release. 3.2 SAMPLING FRAME To secure an acceptable result, this study decided to use 50 samples out of all companies that went public and were listed on the second board within year 2005 to 2009. The decision to use this sample was due to the inability to collect more data due to the time constrain during research. Furthermore, this study wants to see the stock return for investor in industrial product sector. And at the same time, it also wants to observe the relationship between recession rate, exchange rate, interest rate and stock price. 3.3 SOURCES OF DATA The selected 50 stock sample being chose from the main board of BM KLCI .The data are collected on monthly actual stock price was collected from the Thomson Financial DataStream, which is provided the information about the companies financial situations over years. Each stock is already being issued from the companies issued until today. These samples were represented by 50 companies from the industrial product sector. 3.4 VARIABLES AND MEASUREMENT There are two types variables has been used in this study there are; the dependent and the independent variables. 3.4.1 Dependent Variables The dependent variable for this study is stock return of each company industrial product sector. 3.4.2 Independent Variables The independent variables will be measured by recession rate, exchange rate, interest rate and stock price. 3.5 RESEARCH DESIGN This research is designed to see the relationship between dependent variable with independent variables. In this study, it analysis in hypotheses testing that will explain the certain significant correlations between KLIBOR and Treasury Bills rates and the stock performance 3.5.1 Purpose of the Study The purpose of this study is to determine the relationship between all the dependent and independent variable. By using descriptive study can know relationship between both of variable. Descriptive study will be able to describe the characteristics of the variable of the situation. By using data from DataStream would be able to compare monthly return for each of the companies. Besides that, this study also can help investor to make decision making and offer the idea for future problem and research. 3.5.2 Types of Investigation The study involved the correlation study types of investigation. The study involves determining the important variable associated with the situation. The important variable is between the recession rate, exchange rate, interest rate and stock price. Correlation studies done in the study are called field studies. This studies will conducted to establish cause and effect to the stock return using the same measurement in the market are called field experiments. The experiment done to establish the cause and affect of the studies so that can make corrective action to make any decision in the investment. 3.5.3 Unit of Analysis In this study, the unit of analysis is group of company and also industry. The group of company that involve fifthly (50) of the properties companies that has been selected in the main board of BM KLCI. The companies selected depend on the year of the companies is establish. The industry that has been selected is recession rate, exchange rate, interest rate and stock price will be compare with the return of each companies return during 5 years. 3.5.4 Time Horizon This study will be use cross-sectional studies to make the research. A study will be done with the monthly data are gathered over five years (5) from year 2005 to 2009, in order to get the result about these studies. 3.6 THEORETICAL FRAMEWORK Research studies indicate that relationship between KLIBOR and Treasury Bills rates and stock performance. Dependent variable: Effect of company Stock Return Independent variables: Recession rate, Exchange rate, Interest rate and Stock Price Movement. Figure 1: Schematic Diagram (Relationship Diagram) Independent Dependent Company Stock return listed in KLCI Stock price movement Interest rate Exchange rate Recession rate According to the schematic diagram above, it can be explaining relationship between stock return with Recession rate, Exchange rate, Interest rate and Stock Price Movement. 3.7 DATA ANALYSIS AND TREATMENT Multiple Linear Regression Model are the statistical tools that been use in this study. This model analysis examine about simultaneous effect between Recession rate, Exchange rate, Interest rate and Stock Price Movement (independent variable) Stock Return (dependent variable) which variable give biggest effect on the dependent variable. Where; Y = Dependent variable which represent Actual Stock Performance = The constant number of equation = Coefficient Beta value = Independent variable which represent Recession rate = Independent variable which represent Exchange rate = Independent variable which represent Interest rate = Error r = (EV – BV) + DIV X 100 BVStock price movement will be measure in Holding Period Return to determine the effect on stock return Where; r = Represent Rate of return EV = Represent Ending Value or end of stock price BV = Represent Beginning Value or beginning of stock price DIV = Represent income or dividend of company 3.8 HYPOTHESIS STATEMENT Some changes will affect the each stock return to the companies. By changing the stock price will affect the return to the companies its self its might be go higher or lower than what it expected will be. To analysis and to test whether this is applicable to the Malaysian Stock Market, the hypothesis has been developing. Hypothesis 1 H0 = Company stock return in industrial product sector outperform than KLCI H1 = Company stock return in industrial product sector underperform than KLCI Hypothesis 2 H0 = Macroeconomic factor does has significant impact in stock return of each company in industrial product sector in KLCI H1 = Macroeconomic factor does not has significant impact in stock return of each industrial product sector in KLCI Hypothesis 3 H0 = Stock price movement does has significant impact in stock return of each industrial product sector in KLCI H1 = Stock price movement does not has significant impact in stock return of each industrial product sector in KLCI SUMMARY This study will be measure according the objective that has been established in earlier chapter. This research can be use to help investors to make the investment decision. Its because this studies focuses on the data from year 2005 until year2009, it will give better overview of each of the properties company in order to take any corrective action in facing the problem and also overcoming the problem in the current situation to make an investment decision. Effect of Macroeconomic on Stock Return Effect of Macroeconomic on Stock Return This research paper is conducted to measure and analyze the effect of macroeconomic on stock return of industrial product sector as compared to performance of Kuala Lumpur Composite Index. Several variables will be used to identify the relationship between the dependant variable which are three pre-specified macroeconomic variables the term structure of recession, interest rate, exchange rate and stock price movement that might give impact to the independent variable which is listed stock of industrial product sectors components in Kuala Lumpur Composite Index. Holding Period Return method will be used to measure the impact dependent variables to independent variable in this research. Secondary data will be used for this research paper, which are about 50 companies in industrial product sectors components that listed in Kuala Lumpur Composite Index; will be acknowledged as the sample for the previous year period from 2005 until 2009 to measure the performance of the sector in economi c condition during the period. It is expected that during the period, the industrial sectors performance that listed in Bursa Malaysia maybe will be affected by the economic condition during the period which will give impact on their stock return. CHAPTER 1 INTRODUCTION 1.0 INTRODUCTION Macroeconomic and stock prices are difficult to predict most of the times. These changes it appears that reflect the shifting demand for that stock or changing facts that it because of expectations of a companys profitability or some of government policy that effect on stock. Therefore, investors speculate how stock are determined most of them will look for to inexpensive share or expensive share with low price earning. Shares in most large established corporations are listed on organized exchanges like the Bursa Malaysia or Shanghai Stock Exchange. Every time a stock is sold, the exchange records the price at which it changes hands. If, a few seconds or minutes later, another trade takes place, the price at which that trade is made becomes the new market price, and so on. Organized exchanges like the Bursa Malaysia will occasionally suspend trading in a stock if the price is excessively volatile and also must legalize trade according their regulation, if there is a severe difference between supply and demand or if they suspect that insiders are intentionally manipulating a stocks price. But in ordinary circumstances, nobody is on purpose to control price. The market price of a stock is basically the price at which a keen buyer and seller agree to trade. Price is volatile when the enormous volumes of stock traders are made awake of professional traders who buy and sell shares each and every one day long. Since these traders do not grab stocks over the long pull, they are not terribly interested in such long-term considerations as a companys profitability or the value of its assets. Or rather, they are interested in such factors mostly trusty as news that would affect a companys long-term prospects might cause other traders to buy the stock, causing its price to raise. If traders believe that others will buy shares, then he/she will buy as well, hoping to sell when the price rises. If others believe the same thing, then the wave of buying pressure will, in fact, cause the price to rise. This trend will continue forever. When we look back to the famous economist John Maynard Keynes which has revealed the economic principle had compared the stock market to a competition then popular in British tabloids, in which rival had to look at photos and choose the faces that other contestants would choose as the prettiest. Each contestant had to look for photos â€Å"likeliest to catch the imagination of the other competitors, all of whom be looking at the difficulty from the same point of observation. similarly, stock traders try to speculation which stocks other traders will buy. The successful trader is the one who anticipates and outfoxes the market, buying prior to a stocks price rises and selling before it falls. 1.0.1 Screening criteria of KLCI Investor can only invest in stocks through a stock exchange, an organized marketplace where stocks are bought and sold under strict rules, regulations and guidelines. KLCI has over 30 listed companies offering a wide range of investment choices to local and global investors. Companies are either listed on Bursa Malaysia Securities Main Market or ACE Market. The Stock Market was created by companies wishing to raise capital for their business. When someone says they have a listed company they indicate listed on Bursa Malaysia. All companies need cash to take advantage of growth opportunities. Many start-up companies however find themselves short of capital to fund expansion. One way to acquire this cash is to publicly float the company. This involves selling part of the company to private individual and institutional investors who are then able to freely exchange these stocks on an open market Most huge matter regarding to the criterias are, high market capitalization on stock itself, it reflects how much share have been issues and its price per share. Blue chip company is resistance to weak market and it has permanently growth for example nestle it has stable growth in term of profit and cash flow. 1.0.2 History of stock Market The Kuala Lumpur Stock Exchange which was incorporated on December 14, 1976 as a company limited by guarantee took over the operations of KLSEB in the same year. The Kuala Lumpur Stock Exchange Berhad was demutualized pursuant to the Demutualization Act and converted into a public company limited by shares on January 5, 2007. Upon the conversion, the organization vested and transferred the securities exchange business to a new wholly-owned subsidiary, Bursa Securities, and became an exchange holding company and were renamed Bursa Malaysia Berhad on April 14, 2007. On 18 March 2005, Bursa Malaysia made its first appearance on the Main Board of Bursa Malaysia Securities Berhad. On 6 July 2009, the Composite Index has been replaced by FTSE Bursa Malaysia KLCI index which reflect the top 30 companies in the exchange. On 4 August 2009, the exchange has combined the main board and the second board into a single market which is called the Main Market. Mesdaq is also renamed into ACE market which provides lower listing requirements. 1.1 BACKGROUND OF STUDY Every time a share in, say, nestle is traded for example, the new price is used to revalue all outstanding shares-just as the value of your home appreciates when the house down the block sells for more than a similar house sold last week. But the value of your home wouldnt be so high if every house on your block were suddenly put up for sale. Similarly, if all ten billion outstanding shares even a small fraction of them-were put up for sale, they wouldnt fetch anywhere near the current market price. (Pirie and Smith, 2003) have say that relationships between accounting information, book values and share prices have significant implications for share prices in Singapore. Foreign exchange rate and interest rate risks are important financial and economic factors affecting the value of common stocks. Research by (King and Wadhwani, 1990) found that the volatility transfer hypothesis suggests that random shocks can induce higher volatility in financial markets and because of contagion effects which are highest in more volatile markets, investors may look abroad to invest in alternative financial assets. This study was aimed to point out whether the stock price behaviors and macroeconomic variables such as foreign exchange rate and interest rate is reflected in listed company stock return in the KLCI or not. Because one of them is accounting factor and other are economic factor. 1.2 PROBLEM STATEMENT The problem studied in this research is about the movement of the stock market and selected individual stock prices for investors usage. Caution should also be exercised in interpreting their results as the period of study includes the 2008 financial crises. It is possible that the severity of the crisis has influenced the statistical results. These papers empirically compares and see the share price of the companies before, during and after the recession and it covers only two macroeconomic factor that have give some effect to the stock return. During this period we will see the flow of the price movement in the market by using fifthly (50) listed company in property sector. Previous studies on stock market by Deshmukh et al (1983) banks can affect their exposure to interest rate and foreign exchange rate changes when they act as financial intermediaries for their clients. As such, their role as financial intermediaries can affect the sensitivity of investor assets and liabilities to interest rate and foreign exchange rate changes 1.3 RESEARCH QUESTION This research is conducted to inquire: 1.3.1 If there any changes of stock return on listed KLCI industrial company effect of macroeconomic? 1.3.2 If there any changes of stock return on listed KLCI industrial company effect of volatile market share price? 1.3.3 Which investment could offer better stock return to investor if using Holding Period Return? 1.4 RESEARCH OBJECTIVES This research is conducted to determine: 1.4.1 Macroeconomic factor have give impact to the stock return. 1.4.2 Changes of share price have give impact to the stock return. 1.4.3 The investment that could offer better performance using Holding Period Return. 1.5 SIGNIFICANCE OF STUDY This research is an observed study upon the macroeconomic factors and changes of stock price that give impact to the stock return of industrial product listed in KLCI. The study is significance for researcher, government and investors. Researchers can be benefit from this study by the information and acknowledge they from the previous to the current and future trend of movement either macroeconomic factors and changes of stock price that give impact to the stock return. As for the government, they can assist in organizing and stabilizing the economy to make the market will always gain some profit to the investors in attract more investment to come to Malaysia. Investors will gain benefit by knowing the current condition of Malaysia stock market as well as the shares before they can invest their pool of money in Malaysia especially in the industrial company. 1.6 SCOPE OF STUDY Macroeconomic and share price is the environment in which all firms operate. The ability to forecast the macroeconomic and share price can translate into spectacular investment performance. Some of the key economic variables are inflation, interest rate and exchange rate. In economics, a recession is a business cycle contraction, a general slowdown in economic activity over a period of time. During recessions, many macroeconomic indicators vary in a similar way. Production as measured by Gross Domestic Product (GDP), employment, investment spending, capacity utilization, household incomes, business profits and inflation all fall during recessions; while bankruptcies and the unemployment rate rise. Recessions are generally believed to be caused by a widespread drop in spending. Governments usually respond to recessions by adopting expansionary macroeconomic policies, such as increasing money supply, increasing government spending and decreasing taxation. High interest rates reduce the present value of future cash flow, thereby reducing the attractiveness of investment opportunities. For these reason, real interest rate are the key determinants of business investment expenditures because sensitive to interest rate affect to interest payment. The foreign exchange market or currency market or Forex is the market where one currency is traded for another. It is one of the largest markets in the world. Some of the participants in this market are simply seeking to exchange a foreign currency for their own, like multinational corporations which must pay wages and other expenses in different nations than they sell products in. However, a large part of the market is made up of currency traders, who speculate on movements in exchange rates, much like others would speculate on movements of stock prices. Currency traders try to take advantage of even small fluctuations in exchange rates. In the foreign exchange market there is little or no inside information. Exchange rate fluctuations are usually caused by actual monetary flows as well as anticipations on global macroeconomic conditions. Significant news is released publicly so, at least in theory, everyone in the world receives the same news at the same time. This study takes place in the subsistence of macroeconomic and changes of stock price in Malaysia as its field is the one to be explored. Moreover 50 listed companies were acknowledged as the sample for the previous five year period. The data of this research will be obtained from DataStream. 1.7 LIMITATION OF STUDY There are several drawbacks in pursuing this research. It includes: 1.7.1 Scope of study The research reference is restricted in the scope of Malaysia due to the field of study. As we know, Malaysia is an emerging country, thus the performance is still not matured compared with the developed countries, like the United States. 1.7.2 Period of the study This study is conducted by using the data from 2005 to 2009. Approximately 50 form 100 companies that listed in Bursa Malaysia, but not all the companies data was provided in that certain period. This constraint is affecting the calculation of portfolio performance. The length of the study also affected this study indirectly. This study used to use five years period of time. The result for five years study would be different if this study managed to use the longer period of time. 1.7.3 Secondary data In this study, we used the secondary data gathered from DataStream, Bursa Malaysia and the other articles references. Some of the data were not up to date to be the good references. For example, when we referred to Bursa Malaysia, some of the data is not currently in use and in DataStream; the problem was some of the data was not available (N/A). It became a limitation to the study because we cannot get the accurate result. 1.8 DEFINITION OF TERMS 1.8.1 KLCI Kuala Lumpur Composite Index or Bursa Malaysia is place where all sector company list their stock to get capital gain from investor that buy their stock. 1.9 SUMMARY There are many reason why this research been conduct but to know the real effect to the stock return many variable been use to meet the objective. For example interest rate, exchange rate, recession and stock price movement is the variables that have effect to the company or investor stock return. CHAPTER 2 LITERATURE REVIEW 2.0 INTRODUCTION Macroeconomics is a branch of economics that deals with the performance, structure, behavior and decision-making of the entire economy, be that a national, regional, or the global economy. Along with microeconomics, macroeconomics is one of the two most general fields in economics. Researcher study aggregated indicators such as GDP, unemployment rates, and price indices to understand how the whole economy functions. Macroeconomists develop models that explain the relationship between such factors as national income, output, consumption, unemployment, inflation, savings, investment, international trade and international finance. In contrast, microeconomics is primarily focused on the actions of individual agents, such as firms and consumers, and how their behavior determines prices and quantities in specific markets. 2.1 GENERAL LITERATURE REVIEW 2.1.1 MACROECONOMICS The effect of macroeconomic fundamentals on stock market volatility has generated a lot of interest. Research by Liljeblom and Stenius (1997) find that it is argued that if the value of corporate equity on the whole depends on the health of the economy, then uncertainty in macroeconomic conditions would affect volatility in stock returns assuming consistent discount rates. Studies have also shown that stock market volatility is driven by uncertainty in macroeconomic fundamentals Fama (1981, 1990), Fama and French (1989) and Chen et al. (1986). It is argued that there is an inverse relationship between interest rates and stock returns. Thorbecke (1997) and Smal and de Jager (2001) observe that a reduction in interest rates induces an injection of liquidity into the economy. This extra liquidity could be channeled to the stock market, driving up the demand and prices of stocks. Patelis (1997) notes that interest rate changes are helpful in predicting stock market returns over a long period. Thus, there is evidence to conclude that interest rate policies should also target stock market price movements. Goodfriend (2003) also notes that, since there is no stable correlation between stock-price returns and short-term interest rates, it would be difficult for interest rates to target stock-price changes appropriately. Bernanke and Kuttner (2003) also note that stock markets do not react much to interest rate changes. Throughout the years, the global economy has been transformed from a simplified financial architecture to a complex intertwined set of financial systems. From the Bretton Woods system to the advent of flexible exchange rate systems in 1973 until the present days, the environment of international markets had experienced substantial changes in the form of excessive variability in exchange rates, greater capital mobility and punctuated by a series of financial crises worldwide in recent years. Meese (1990) who studied the currency fluctuations in the post-Bretton Woods era found that the changes of macroeconomic variables alone could not explain major currencies movements. MacDonald and Taylor (1994) however noticed relationships between macroeconomic variables and exchange rate. A recent study by Rapach and Wohar (2002) meanwhile produced mixed results for the monetary model of exchange rate determination. In December, 2007 economic recession that began in the United States spread much of the industrialized world, and has caused a uncertainty of economic activity. This global recession has been taking place in an economic environment characterized by various imbalances and was sparked by the outbreak of the financial crisis of 2007–2009. However, Mitchell and Netter (1989) argue that the three-day decline preceding the crash was a large enough decline that it became the fundamental news and that shook the market. The theoretical model of Jacklin et al. (1992) (among others) shows how a surprise significant drop in the market could have provided information to the market that would directly lead to a crash. Among all macroeconomic factor stock price movement is also effect by changes in economic environments. CRR (1986) results are tested to see whether the factors priced in the US market are applicable in Turkey stock market, with adding new variable unemployment rate, because we expected a relation with the stock returns. 2.2 THEORETICAL FRAMEWORK Four factors are selected to test the relationships of these factors and stock return. The factors are recession, interest rate, exchange rate and stock price movement. 2.2.1 Recession Recession is one of the macroeconomic factors that effect to the listed company stock return in KLCI. Some of the researcher say that recession have give negative impact to stock return but some researcher found that recession is no relation with stock price. CRR (1986) shown that the tested macroeconomic variables do not affect the share price in the UK stock market. 2.2.2 Exchange Rate. Exchange rate is most been use by investor to do transaction to buy stock in market, because of that exchange rate is consider one of the factors that effect to the stock return. Movements of exchange rate are always a concern for various parties. In international currency markets, exchange rate plays a significant role and the variability of exchange rate, whichever way it sways, tends to give a significant impact on the economy. 2.2.3 Interest Rate. Interest rate also one of the factor that give impact to the stock return because some researcher say that interest rate give negative impact to the stock return. Anthony Kyereboah-Coleman and Kwame F. Agyire-Tettey (2008) mention that there negative real interest rates for extended period. 2.2.4 Stock Price Movement. Stock price move is most related to the stock return because every time changes in stock price effect to the outcome of stock return for investor investment but some of the researcher say that there is no effect on stock return. For example Martinez and Rubio (1989) tested the Spanish market return and they found that there were no significant pricing relationship between stock returns and the macroeconomic variables. 2.3 SUMMARY Literature review is the part where it shows where it show whether the variable will be strongly acceptance or not. From the previous study that has been done it has shown that, most of the variable has its own importance not only in affecting some issue but also in solving it. This literature reviews shows the effect of this study on the stock return as the dependent. It also has many researches done with the difference result. CHAPTER 3 METHODOLOGY AND DATA 3.0 INTRODUCTION This chapter discusses the research methodology used in the study. Methodology is one the important method that had been use to test the hypothesis on this study in order to get the finding at the end of the study. Research design and research methodology is most of the important part for this study since it provide a lot of useful information on how to get the data, how to conduct the survey and provide additional information in order to get better result and finding for this study. This chapter explains how the data for conduct the study is collected and carried out. It also explain on the method that is going to be use to get the finding at the end of the study. It also focus on the data sources, sample involved in the study and the methodology to be use in this study. In this study the variables that had been used was economic recession, exchange rate, interest rate and stock price which collected on the monthly basis for the period of 5 years ended in December 2005 until December 2009. This study consists of 50-industrial product firm and using time series period from 2005 to 2009. Focus for this study was more on the Regression Model analysis to test the finding. Since this study was investigate and identify the relationship between macroeconomic and stock price movement to profitability so using the regression data analysis model had done it for the past 5 years.. There are several key items such as data collection method, sampling frame, sources of data, variables and measurement, research design, theoretical framework, hypothesis statement, data analysis, and treatment which will clarify in detail in this chapter. 3.1 DATA COLLECTION The price indices at monthly frequency are collected for sectors in Bursa Malaysia: industrial product sector. All the closing prices of these sector indices sourced from the secondary data from Thomson Financial DataStream over five-year period from year 2005 to year 2009 (5 years). Meanwhile, for the independent variables of recession rate, exchange rate, interest rate and stock price will be extracted from Thomson Financial DataStream and Bank Negara Malaysia official release. 3.2 SAMPLING FRAME To secure an acceptable result, this study decided to use 50 samples out of all companies that went public and were listed on the second board within year 2005 to 2009. The decision to use this sample was due to the inability to collect more data due to the time constrain during research. Furthermore, this study wants to see the stock return for investor in industrial product sector. And at the same time, it also wants to observe the relationship between recession rate, exchange rate, interest rate and stock price. 3.3 SOURCES OF DATA The selected 50 stock sample being chose from the main board of BM KLCI .The data are collected on monthly actual stock price was collected from the Thomson Financial DataStream, which is provided the information about the companies financial situations over years. Each stock is already being issued from the companies issued until today. These samples were represented by 50 companies from the industrial product sector. 3.4 VARIABLES AND MEASUREMENT There are two types variables has been used in this study there are; the dependent and the independent variables. 3.4.1 Dependent Variables The dependent variable for this study is stock return of each company industrial product sector. 3.4.2 Independent Variables The independent variables will be measured by recession rate, exchange rate, interest rate and stock price. 3.5 RESEARCH DESIGN This research is designed to see the relationship between dependent variable with independent variables. In this study, it analysis in hypotheses testing that will explain the certain significant correlations between KLIBOR and Treasury Bills rates and the stock performance 3.5.1 Purpose of the Study The purpose of this study is to determine the relationship between all the dependent and independent variable. By using descriptive study can know relationship between both of variable. Descriptive study will be able to describe the characteristics of the variable of the situation. By using data from DataStream would be able to compare monthly return for each of the companies. Besides that, this study also can help investor to make decision making and offer the idea for future problem and research. 3.5.2 Types of Investigation The study involved the correlation study types of investigation. The study involves determining the important variable associated with the situation. The important variable is between the recession rate, exchange rate, interest rate and stock price. Correlation studies done in the study are called field studies. This studies will conducted to establish cause and effect to the stock return using the same measurement in the market are called field experiments. The experiment done to establish the cause and affect of the studies so that can make corrective action to make any decision in the investment. 3.5.3 Unit of Analysis In this study, the unit of analysis is group of company and also industry. The group of company that involve fifthly (50) of the properties companies that has been selected in the main board of BM KLCI. The companies selected depend on the year of the companies is establish. The industry that has been selected is recession rate, exchange rate, interest rate and stock price will be compare with the return of each companies return during 5 years. 3.5.4 Time Horizon This study will be use cross-sectional studies to make the research. A study will be done with the monthly data are gathered over five years (5) from year 2005 to 2009, in order to get the result about these studies. 3.6 THEORETICAL FRAMEWORK Research studies indicate that relationship between KLIBOR and Treasury Bills rates and stock performance. Dependent variable: Effect of company Stock Return Independent variables: Recession rate, Exchange rate, Interest rate and Stock Price Movement. Figure 1: Schematic Diagram (Relationship Diagram) Independent Dependent Company Stock return listed in KLCI Stock price movement Interest rate Exchange rate Recession rate According to the schematic diagram above, it can be explaining relationship between stock return with Recession rate, Exchange rate, Interest rate and Stock Price Movement. 3.7 DATA ANALYSIS AND TREATMENT Multiple Linear Regression Model are the statistical tools that been use in this study. This model analysis examine about simultaneous effect between Recession rate, Exchange rate, Interest rate and Stock Price Movement (independent variable) Stock Return (dependent variable) which variable give biggest effect on the dependent variable. Where; Y = Dependent variable which represent Actual Stock Performance = The constant number of equation = Coefficient Beta value = Independent variable which represent Recession rate = Independent variable which represent Exchange rate = Independent variable which represent Interest rate = Error r = (EV – BV) + DIV X 100 BVStock price movement will be measure in Holding Period Return to determine the effect on stock return Where; r = Represent Rate of return EV = Represent Ending Value or end of stock price BV = Represent Beginning Value or beginning of stock price DIV = Represent income or dividend of company 3.8 HYPOTHESIS STATEMENT Some changes will affect the each stock return to the companies. By changing the stock price will affect the return to the companies its self its might be go higher or lower than what it expected will be. To analysis and to test whether this is applicable to the Malaysian Stock Market, the hypothesis has been developing. Hypothesis 1 H0 = Company stock return in industrial product sector outperform than KLCI H1 = Company stock return in industrial product sector underperform than KLCI Hypothesis 2 H0 = Macroeconomic factor does has significant impact in stock return of each company in industrial product sector in KLCI H1 = Macroeconomic factor does not has significant impact in stock return of each industrial product sector in KLCI Hypothesis 3 H0 = Stock price movement does has significant impact in stock return of each industrial product sector in KLCI H1 = Stock price movement does not has significant impact in stock return of each industrial product sector in KLCI SUMMARY This study will be measure according the objective that has been established in earlier chapter. This research can be use to help investors to make the investment decision. Its because this studies focuses on the data from year 2005 until year2009, it will give better overview of each of the properties company in order to take any corrective action in facing the problem and also overcoming the problem in the current situation to make an investment decision.

Safe Distances :: Personal Narrative Religion Papers

Safe Distances Evolution at its most basic is the process by which a species puts barriers between itself and extinction. Anytime a species finds a way to increase its individual organisms' ability to reproduce, it has put a little extra distance between the species and total annihilation. For example: the peacock's elaborate tail, which ensures his success in propagating his genes, also makes him an easy catch for predators. One might imagine that the peacock could simply have invested in a foreign sports car to attract the opposite sex. I was 15 the first time I made my own blood run. I was sitting in the crowded closet, feeling that iron-in-my-stomach sensation that had been with me more and more since my grandmother had died, since my father had started screaming so much, since my feelings for school had gone from run of the mill adolescent angst to extreme boredom, frustration, outrage over the absurdity of it all. I would sit some nights like a toddler in the darkness of my closet, morosely rehashing my grievances against life, lost in a forest of sweaters and skirts. I would brood, and think and will myself not to cry until the effort became too great and I'd give in and wring my hands and rain tears on my sneakers and sandals and sensible dress shoes in silence until the iron had dissolved enough that I could stand straight again. The Hebrew's relationship with God starts out as extremely simple and extremely personal. God chooses his favorites with frightening randomness, picking otherwise unremarkable second sons to succeed their morally ambiguous, but also chosen, fathers. God's actions in Genesis are often inexplicably random, even petty. God forbids his first human creation to eat a certain apple, and then puts a whole tree full of the forbidden fruit right in front of them. When they finally give in and taste test what they shouldn't have, Adam and Eve are banished from paradise and consigned to death. God's actions here seem cruel and unfair, or at the very least, unfathomable to human minds. We can't help but feel a little outrage and confusion over the events of Genesis. Why wasn't Lot's wife allowed to look back (19:26)? Why did God just up and slay Er (38:7)? How could Cain be allowed to live after killing his brother (4:15), when God was willing to kill all the children on earth with one gigantic flood in order to cleanse the earth of sin (6:13)?

Knowledge, skills and behaviours Essay

Many business use the CIPD Human resources profession map as it sets out what HR practitioners need to know, do and deliver at all stages of their career to be effective and successful. It sets a benchmark for HR excellence for the individual and the HR function. The map focuses on the knowledge, activities and behaviours by underpinning the skills required to develop products and services for the profession and the individuals, and it sets out how HR adds the greatest sustained value to the organisation now and in the future. It provides you with the support to accelerate your own career and professional development by offering an online self assessment tool called My HR Map. The map was devised from HR experts so it is a reliable source. The map is made up of different sections, firstly eight behaviours which are shown around the outside of the circle, these are; decisive thinker, skilled influencer, personally credible, collaborative, driven to deliver, courage to challenge, role model and curious. This section describes the behaviours and HR professional needs to carry out there activities. Each behaviour is described at four bands of professional competence. These four bands which go up the side of the map describes the four bands of professional competence and the transition challenges faced when moving from one band to the next, it is how their contribution and success is measured, band one being where you start at in a HR role and band four being a senior or management role. And then then there are ten professional areas inside the map which describes what activities you need to do and what you need to know for each area of the HR profession at four bands of professional competence. The ten professional areas are; organisation design, organisation development, resourcing and talent planning, learning and talent development, performance and reward, employee engagement, employee relations, service delivery and information, and the final two are professional areas which are recognised as the two core areas, these are insights, strategies and solutions, and leading HR. The two core professional areas of the map sit at the heart of the map and are applicable to all HR professionals regardless of their job role and stage of their career. Firstly looking at Insights, strategies and  solutions, this develops actionable insights and solutions, prioritised and tailored around a deep understanding of business, contextual and organisational understanding. The CIPD have produced tables for each of the professional areas describing the activities (what you need to do) and the knowledges (what you need to know) for each one putting them in relation with the bands. The four bands of professional competence define the contribution that professionals make at every stage of the HR career. Looking at the activities in insights, strategies and solutions a first example is building a picture. In band one the employee needs to Use management information and role experience to develop an understanding of what’s happening in the organisation and externally. Another example of an activity is Developing actionable insight, in band one the employee needs to Develop insights about potential opportunities or risks for the organisation from experience. From the same activity an example of a band two would be to work with colleagues and managers to develop shared insights and priorities and activities. Building capacity and capability is another activity and an example from a band one would be that the employee has to provide accurate and timely information, data and advice to managers and employees on organisations human resources policy and procedures and employment laws. Then moving on to knowledges so this is what the employees need to know. Firstly looking at business knowledge band one is to know the vision and purpose of the organisation and how this relates to your role. For contextual knowledge in band two the employee would need to know the sector context in which the organisation operates. In band one for organisational knowledge the employee needs to know the capability and skills that are needed within the organisation. And finally HR professional knowledge a band one professional would need to know how to effectively organise their own workload and priorities. Leading HR is the other core professional area and this area provides active, insight-led leadership owning, shaping and driving themselves, others and activity in the organisation. Although not everyone will have a role where they lead others, it is still important that they develop and grow in the other two dimensions. Looking at the activities for Professional leadership in band one the employee needs to seek feedback and coaching to continually learn and develop as a professional by using HR  processes as appropriate for own CPD (e.g. through my HR Map). Another activity is leading others, in band one the professional needs to focus on delivering flawless process and relevant, timely and accurate advice and data to support HR operations plan. Looking at leading issues an example of an activity is delivering value and performance in HR teams, and example of a band two professional would be to seek feedback from team to identify areas of concern around HR reward and recognition package and make suggestions for improvement where appropriate. Now looking at the knowledges of what the professional needs to know in leading HR the first example is leadership, they need to know the differences in how people work and interact, that is a band one professional. Another band one knowledge is Resource management, the employee needs to know personal skills profiles and strengths and gaps against role requirements. Performance management is another knowledge and for band two the professional needs to know methods for managing and evaluating team performance. Finally financial management, in band one the professional needs to know methods for collecting and analysing financial and non financial data.

The Importance of Religion for Two Paradigms Science and...

Importance of Religion for Two Paradigms: Science and Natural Philosophy Since the beginning of the intellectual development of mankind, the question of whether there is god or not has been a question that still remains. However, its effects on our way of thinking has been shaped by a number of people, thinkers, priests, scientists so on and so forth. If we were to divide that continuum into two parts, they would be before the enlightenment and after the enlightenment. Namely the times of natural philosophy and times of science since the term produced after the mid eighteenths. Before the enlightenment religion was the core, center pillar of natural philosophy when the medieval Europe was thought. Nevertheless, after that era the†¦show more content†¦The main difference between the natural philosophy and the science has come from the part of experiment. While science is empirical, natural philosophy is not. The power lies within science comes from the experiment part because it is undeniable. Moreover, there is another difference. In that, as Re eves (2008) states that the goal of natural philosophy is different than the modern science. Because, natural philosophers had no interest in prediction and control but rather general understanding of nature. Thirdly, place of religion in those two paradigms. As a matter of fact that distinction can be seen by looking at how they get separated from each other by enlightenment. Just before the enlightenment, the natural philosophy and religion were highly integrated in medieval Europe. They were not seen as different thing rather they seemed to be a part of the order of god. Interestingly, universities were helping that system. But there were some great thinkers who changed that perpetual cycle. However, that shift was occurred in an instant. It can be understood by glancing at some examples. For example Isaac Newton is known as the father of calculus and the founder of law of gravity. It may appear that he was a scientist since he followed the scientific method and devise such things. If we look at it one famous book called â€Å"Mathematical Principles of NaturalShow MoreRelatedThe Enlightenment Paradigm Shift Within The Era1628 Words   |  7 PagesThe Enlightenment Paradigm Shift The Enlightenment era, between the 1500s and 1800s was a predominately intellectual movement that saw the development of new ideas, major changes in Church-State relations and scientific discoveries that are still fundamental today. Until the Renaissance and Reformation period the Church, from the ancient to medieval ages, had total domination. 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Everyday Use By Alice Walker - 1102 Words

People hold on to pieces of jewelry, furniture, and other symbolic collectables that is passed through generations. These things can remind a person of a loved one that is seen as being priceless. Adrienne Rich, poem â€Å"Aunt Jennifer’s Tigers† can be read similar to Alice Walker s short story Everyday Use† both are compared by the women’s ways of showing their strengths and how they identify their values, expressions and strength. Advertised in the general outlines of the plot, both literary themes talks of a quest for freedom, the characters identity and self-expression. Adrienne Rich â€Å"Aunt Jennifer’s Tigers† Alice Walker â€Å"Everyday Use† Comparison Paper Analyzing the two types of literature forms, a poem and a short story the two authors grew up different, with different surroundings, and have written stories in different times of history when men controlled and women were expected to become obedient wives; and the other story reminds American women of the years when women lacked a voice not only in society but also in everyday life. The authors, Adrienne Rich, was born on May 16, 1929, in Baltimore, MD. A U.S. poet, scholar and critic, was a college student when her poem â€Å"Aunt Jennifer’s Tigers† was published in 1951. Novelist, poet and feminist Alice Walker was born on February 9, 1944, in Eatonton, Georgia. â€Å"Everyday Use is a short story, it was first published in 1973. 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At this facet, â€Å",Everyday Use†, tells that how a mom little by little refuses the cursory values of her older, successful daughter at the aspect of the useful values of her younger, much less lucky daughter. On a deeper outlook, Alice Walker takes on the theme of heritage and its norms as it applies to African-Americans. Everday Use, is set insideRead MoreEveryday Use By Alice Walker1372 Words   |  6 Pagessociety as a whole, but more specifically in the African American Community. Alice Walker gives slight insight into   what being forced   to assimilate is like. She says in her short story Everyday Use: She will stand hopelessly in corners homely and ashamed of the burn scars down her arms and legs eyeing her sister with a mixture of envy and awe. Statements such as these are a regular occurrence in her works. Walker often speaks on the ever so disheartening topic of cultural assimilation and theRead MoreEveryday Use By Alice Walker996 Words   |  4 PagesIn the short story â€Å"Everyday Use† by Alice Walker, the author describes different ideas about one’s heritage. Culture and heritage is at the main point of the story â€Å"Everyday Use† by Alice Walker as symbolized by the quilt. The bond that Mother and Maggie share is brought by their common talent to make works of art like quilts. Dee does not have similar capacity because she does not appreciate manual labor nor believes in her heritage. The idea of pride in culture, heritage, and family is the mainRead MoreEveryday Use By Alice Walker1721 Words   |  7 PagesIn her short story â€Å"Everyday Use,† Alice Walker summarizes the representation of the beauty, the conflicts and struggles within African-American culture. â€Å"Everyday Use† focuses mainly between members of the Johnson family, consisting of a mother and her two daughters. One of the daughters Maggie, who was injured in a house fire and has living a shy life clinging to her mother for security. Her older sister is Dee, who grew up with a grace and natural beauty. â€Å"Dee is lighter than Maggie, with nicerRead MoreEveryday Use By Alice Walker1655 Words   |  7 PagesIn â€Å"everyday Use,† Alice Walker tells a narrative of a mother’s frustrating relationship together with her two daughters. At this facet, â€Å",Everyday Use†, tells that how a mom little by little refuses the cursory values of her older, successful daughter at the aspect of the useful values of her younger, much less lucky daughter. On a deeper outlook, Alice Walker takes on the theme of heritage and its norms as it applies to African-Americans. Everday Use, is set inside the late ,60s or mid ,70sRead MoreEveryday Use By Alice Walker1735 Words   |  7 Pages â€Å"Everyday Use† by Alice Walker and â€Å"Brownies† by ZZ Packer are two different short stories with different lessons but both talk about the topic of race. Both stories talks about the time in the 20th century when slavery just ended but racism are still active between African Americans and Caucasians. Walker described a story about a single African American mother who is waiting for her daughter to arrive from college. Packer described a story about these African American fourth graders who are inRead MoreEveryday Use By Alice Walker1111 Words   |  5 Pagestheir culture. Alice Walker highlights and distinguishes the dissimilarities and clichà © of country African American women with the actualities that make up their lives. Characterized by short, compound sentences, with long adjectives and use of literary elements, her style is eloquent co nversational and authentic. Alice Walker’s short story, Everyday Use is stylistic, ironic and narrates profound interpretation of unique views and approaches to African-American culture. Walker’s use of characterizationRead MoreEveryday Use By Alice Walker1725 Words   |  7 Pages17 April 2017 Everything is Not What it Seems Sometimes people forget that heritage has to do with truly understanding their past. Many often misrepresent it, especially the younger generations who just accept its presence. Alice Walker’s short story, â€Å"Everyday Use,† revolves around an African American family that consists of three women, who are very different from each other. The story begins with Maggie and Mama waiting in the yard for Dee, the main character, to visit from Augusta. Dee isRead MoreEveryday Use By Alice Walker1192 Words   |  5 PagesAlice Walker’s â€Å"Everyday Use† is a short story included in her collection In Love and Trouble published in 1973. The story’s setting takes place in the Deep South during the Civil Rights Movement in the 1960s as many â€Å"blacks† were struggling to define their cultural identities (White). Traditions and culture in â€Å"Everyday Use† is portrayed contrastingly between Ms. Johnson and Maggie, who still follow rural black cultural of the south and Dee who has newly adopted a â€Å"native African† culture. An encounter

Essay Symbols and Symbolism in The Great Gatsby - 520 Words

Symbolism in The Great Gatsby The Great Gatsby is filled with symbols and symbolism, which try to convey Fitzgeralds ideas to the reader. The symbols are uniquely involved in the plot of the story, which makes their implications more real. There are three major symbols that serve very important significance in the symbolism of the novel. They are the valley of the ashes, the reality that represents the corruption in the world, the green light of Daisys lap that Gatsby sees across the bay and lastly, the symbolism of the East Egg and West Egg or more important the east and the west of the country. The Valley of the Ashes is located next to the river, where railroad and highway intersect. It is a dumpster between West Egg†¦show more content†¦The green light is what Gatsby aspires to meet his entire life, it is his primal destination in life. The only reason Gatsby buys the house is to see the light in Daisys window across the bay. In chapter 5 when Gatsby tells Daisy how he stares bluntly at the green light, he is aware that he will no longer need to stare it for he has Daisy back now. He wins the reward, which was behind his primal target. His reward is the real thing and he no longer needs its representative and thus the green light begins to fade. Gatsby begins to slowly recognize the reality: no object can replace his ideal that he has created for himself since the yearly age. This shows how no mater how much materialism is acquired by a person, it will never be enough and it will never quite match up to ones illusion, to ones dream. The symbolism behind East Egg and West Egg plays an important role in Fitzgeralds expression of corruption. East represents the wealth and the sophistication as well as the recklessness and the corruption of the people. The West on the other hand represents the lower classes, which in their blindness try to attain wealth, in order to fit in with the high privileged classes, which are mercenary to begin with. Fitzgerald points out here that both the upper, more privileged classes and the lower classes are immoral and corrupt for each of them has reached a level where their lives are taken by the materialism of life. As stated earlier, symbolism is importantShow MoreRelated Symbols and Symbolism in The Great Gatsby - Symbolism and the Truth3878 Words   |  16 PagesSymbols and Symbolism in The Great Gatsby - Symbolism and the Truth That Lies Between      Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Symbolism is a very important device in Fitzgeralds 1926 masterpiece, The Great Gatsby. Different objects, words or actions symbolize different character traits for each person depicted in his novel. Through symbolism, Fitzgerald manages to describe three completely different aspects of the human life. He conveys the glittery, magnificent life of the rich, the gray, ugly and desperate life of theRead More Symbols and Symbolism - Heat as a Symbol in The Great Gatsby1938 Words   |  8 PagesHeat as a Symbol in The Great Gatsby        Ã‚  Ã‚  Ã‚   Symbolism plays an important role in any novel of literary merit. In his novel The Great Gatsby, F. Scott Fitzgerald displays a superior use of symbols such as color, light, and heat. Fitzgerald’s superior use of heat as a symbol is the focus of this essay. â€Å"When F. Scott Fitzgerald turns on the heat in Gatsby, he amplifies a single detail into an element of function and emphasis that transforms neutral landscapes into oppressive prisms† (DysonRead More Symbols and Symbolism in The Great Gatsby Essay1207 Words   |  5 PagesSymbolism in The Great Gatsby       Fitzgerald’s The Great Gatsby has more relevance in today’s society than it did when it was written. 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Mobile Business Technologies TESCO

Question: Describe about the Mobile Business Technologies? Answer: Introduction The retailers need to access the multi- channel behavior of shopping so that the shifting and ever evolving needs and expectations of the customers are met (Bondari, 2010). The shoppers of todays world are equipped with tablets, smart phones and have access to the internet. People have the chance of accessing internet from various places like their homes, on the road, at offices or at work places (Lee, 2010). This opportunity has made possible the fact that it has helped the retailers to give a shopping experience to the people anytime and anywhere. How the technological innovations help the retail sector The speed with which the internet technology is developing is very fast. The rising uses of the mobile technologies like tablets and smartphones have greatly impacted the consumer behavior as well as the retail business largely. Mobile digital technological services have helped to provide ads, new services and offers (Prepletan, 2015). It also engages the customers in shopping online. Apart from the various services the online retail services provide on the mobiles and tablets, there are certain other services that the mobile technology services provide; those are the blogs and the social media pages. The customers of today are not only customers who buy the product but also market and advertise the products by sharing their views on the blogs and the social media pages (Nacif, 2003). The customers check the products and review the product on the sites of social media and also on the official websites of the retailers. TESCO The tesco.com is an e-commerce website as well as an online shopping portal. The website provides a wide range of products like groceries, books, electronic products and other financial services. The retail chain has started its online shopping in the year 1997 which was named as Tesco Direct (Barnes, 2011). Later in the year 2000 it opened its web portal tesco.com. In 2007 it became the first company home deliver goods in UK. It also first took the initiative of delivering goods in green boxes in order to reduce the use of plastic carry bags. In the year 2009, Tesco was the first company to provide an API which paved way for the smartphone users. Tesco has recently revealed that it made 127 million profit in trade in the United Kingdom Tesco is one of the largest retail chains in the world with over 500,000 employees. The company serves millions of people in a weak at their stores. They retail chain operates in 12 countries. the technology innovation is done to provide the customers an experience of the location of the store, as well as the supply chain of the store. Moreover it also provides the customer with a real time availability of the products in the store that can be ordered online. The company is currently running a pilot project in which there is a three shelf activities which includes customer and product information, price management and stock management (Smith, 2012). With the wireless technology operated through the tablets and smartphones the company feels that they are always with the people and they serve the people better with this new shopping venture. The customers of Tesco have become so familiar with the shopping channels of the company that people now enjoy the experience and expect good products and at fair prices (Corina, 1971). They also look for easy availability and delivery which is convenient for them. The company has several click and collect points where the customer can collect their orders made from their home. This gives them a opportunity to browse through a wide range of products and order that is needed from a local Tesco store at their convenience (Tesco and Morrisons school report, 2014). The company also provides a new experience that contains the ingredients of various recipes in one catalogue which the people can order online and add to their basket if they wish to make those products. Moreover the large Tesco stores have the services of Wi-Fi in their stores which allows the customers to browse on their mobiles and compare the prices of the products while they shop. This new system is called scan as you sho p (Stahlberg and Maila, 2010). This system has become very popular with the people after its launch. The mobile technology has enabled the company to personalize their approach (Tesco.com, 2015). The company is able to understand the needs and wants of the customers and how they shop. Moreover they come to know about their tastes and preferences, their habits and buying behavior. The application of mobile technology in the retail industry Digital promotions The use of the social media sites is a way to promote the products. By this way the company can advertise their products and the share their great shopping experiences on the blogs and social media sites. More over the company can provide information to the customers who are on the move and help them know about the latest offers, prices and discounts. Location-based mobile promotions The people often make their purchase decision by consulting their friends and families and reviewing the products on various sites and checking their prices. So the company offers a service on the mobile by which they can browse the products and the competitive prices. The customers can also make orders inside the store by browsing the website in their mobiles and tablets and collect it from the counters and dont need to browse through the aisles. The retail chain also provides the customers with points who shop through the online pages and can later redeem the points to purchase other products (Tesco.com, 2015). The customer feels this to be interesting as they can often get discounts and gifts, and it also saves their time. Mobile point of sales Mobile point of sales is just a new concept based on the physical point of sales. It enables the retailers to take the data of sales at the point where a sale is made (Sansom, 2000). The store assistants are provided with mobile POS so that they can serve the customers without the customer waiting in the line to solve their queries. It provides the customers a time saving opportunity against the cash register counters. Payments from mobile and digital wallets The mobile digital services through the smartphones have become a good option for the customers to make their payments. By this way the customers need not visit the stores physically. The sale of products over the mobile technology is expected to rise over the next few years as also the payment over the mobile will also rise. Moreover the payment can also be made via credit card and debit cards through the mobiles and tablets. These digital wallets are portable since they are online. Other benefits The use of mobile technology has enabled the customers to get a personal assistant while shopping online who will accompany and guide the customer in the decision making. The electronic price tags provided by the company enable the customer to better understand the price of the products. Developing an app for the company There are various ways of developing an app for the company. Native approach: they are written in native languages and primarily for the individual operating systems like android, Windows and iOS. Mobile Web: it uses the technology of HTML5. It is designed to run on mobile sizes screen and thus it can be opened with many mobile browsers. Hybrid application: it is a type of browser which uses HTML, JavaScript and CSS for developing their apps. It is a platform which can work on all devices be it mobiles, computers or tablets (Msdn.microsoft.com, 2015). The company has strived in making the pages on the site validate to W3C formal grammar (HTML 5 and XHTML Strict). The company Tesco has no mobile or tablet app for home and furniture products. The feature is only available to their desktop sites. The cost for introducing an app for the home and furniture would be around $500,000 which includes the design, features, infrastructure, and administration, testing and planning. A good app should be helpful in reducing the problems of the people. The graphics should be clear and give a clear view of the product from all directions. The app should contain the list of the products on the home page. Products it includes the different type of products available with their features and price. This will also contain various images of the product from various directions and in different colors and shades (Tesco.com, 2015). The product should also have the option of home delivery or store pickup. The examples of some of the products that can be offered are- Shop by room (bathroom, bedroom, kitchen, living room, dining room etc) Furniture (sofas, dining tables and chairs, wardrobes, chests etc) Accessories (curtains and blinds, mirrors, clocks, candles, vases etc) Shop by trend (Midtown, All that Glitters Argyll etc) My profile - where the customers can create their accounts for purchase and payments. The customers can also update their purchases and see what products they have purchased. Share by using this option the customers can share their experiences of the app with their friends and relatives on Twitter, Facebook, and LinkedIn etc. The company has pages on these various sites and this option will enable the customers to rate the product on the new home and furniture products. Customer support the customer support will assist the customers if they face any problem with placing the orders of if they have any trouble with the payments. Moreover this feature will provide the customers about the return of purchases also (Tchan, 2002). It will also contain the location of the various physical stores that are nearby so that the customers can pick up the products at their ease. The most important thing that the app will provide is the ease of use for the customer. The customers will not use the app if they find the app to be very complicated or the images do not show properly. The company must keep in mind that the app should be an easy one since it is mobile based. Moreover the app should continuously be updated to include new products and prices along with the various offers and promotions. The company should evaluate themselves from the ratings they get on Facebook, Twitter etc. Conclusion Mobile digital technological services have helped to provide ads, new services and offers (Prepletan, 2015). It also engages the customers in shopping online. The payment can also b e made via credit card and debit cards through the mobiles and tablets. It is seen that the company Tesco has no mobile or tablet app for home and furniture products. The feature is only available to their desktop sites. It will be beneficial for the company as well as the people it the app is introduced with the features like Products, My profile, Share, Customer support, so that the people are able to view the product, share their comments and can purchase the products while they are on the move or not in front of the desktop. Moreover it can reduce their problems of going to the store. References Barnes, R. (2011). The great Tesco beauty gamble (the Tesco supermarket chainÂ’s marketing strategy for breaking into the UK beauty services market).Strategic Direction, 27(7). Bondari, B. (2010).Wordpress 2.9 e-commerce. Birmingham, U.K.: Packt Pub. Chiron, P. and Aubier, M. (2001).Tesco. Paris: Eurostaf. Corina, M. (1971).Pile it high, sell it cheap. London: Weidenfeld and Nicolson. Doherty, N. and Ellis-Chadwick, F. (2006).Electronic commerce in the retail sector. Bradford, England: Emerald Group Pub. Fernie, J. (2005).Online shopping. Bradford, England: Emerald Group Pub. Koivukoski, U. and RaÃÅ'ˆisaÃÅ'ˆnen, V. (2005).Managing mobile services. Chichester, West Sussex: Wiley. Lee, I. (2010).Transforming E-business practices and applications. Hershey, PA: Information Science Reference. Mariga, J. (2003).Managing e-commerce and mobile computing technologies. Hershey, PA: IRM Press. Msdn.microsoft.com, (2015).Chapter 4: A Technique for Architecture and Design. [online] Available at: https://msdn.microsoft.com/en-gb/library/ee658084.aspx [Accessed 23 Feb. 2015]. Nacif, R. (2003).Online Customer Loyalty. Wiesbaden: Deutscher UniversitaÃÅ'ˆtsverlag. Otreva, i. (2015).How Much Does It Cost To Build an App?. [online] Otreva.com. Available at: https://www.otreva.com/calculator/stats.php [Accessed 23 Feb. 2015]. Prepletan, D. (2015).The Impact of Digital Technologies on Innovations in Retail Business Models. 1st ed. [ebook] Available at: https://projekter.aau.dk/projekter/files/77192390/Master_s_Thesis.pdf [Accessed 23 Feb. 2015]. Sansom, P. (2000).Point of sale. Manchester: Carcanet. Smith, C. (2012).Tesco CIO: personalisation is the next big thing for retail technology. [online] the Guardian. Available at: https://www.theguardian.com/media-network/2012/nov/07/tesco-retail-personalisation-technology [Accessed 23 Feb. 2015]. Stahlberg, M. and Maila, V. (2010).Shopper marketing. London: Kogan Page. Tchan, N. (2002).Make payments online. Chatswood, N.S.W.: Software Publications. Tesco and Morrisons school report. (2014).Strategic Direction, 30(2), pp.18-20. Tesco.com, (2015).Accessibility - Tesco.com. [online] Available at: https://www.tesco.com/help/accessibility/ [Accessed 23 Feb. 2015]. Tesco.com, (2015).Buy Beds from our Bedroom Range. Single, Double and King Silentnight brand available - Tesco.com - Tesco.com. [online] Available at: https://www.tesco.com/direct/home/beds/cat3375792.cat?icid=redirect_beds_WebEvents=beds_requestid=4549688 [Accessed 23 Feb. 2015].