Analysis Of Shareholder Binding Vote Rule - 1235 Words

Introduction Shareholders finally ended a decade of advisory vote for pay on executive pay of directors after a new Enterprise and Regulatory Reform Act published in 2013. (Orsagh, 2013) The new policy promulgated should be possible to set off an enormous impact for all types of people, especially the shareholders. However, the fact is quite unsatisfactory. In this essay, the analysis of shareholder binding vote rule will be divided into two sections in the main body, one is focus on the effects and benefits from binding vote and another one is describe the useless binding vote and it problem. A brief overview of background of corporate governance will be introduced first. Main Body a) Background of Corporate Governance Corporate†¦show more content†¦Moreover, one of the key futures of Britain best practice has been changed. The executive remuneration of directors will deeply influenced by the votes of shareholders, that the rights of the shareholders have become powerful. b) The effects and benefits from binding vote As regard as shareholders have binding vote for executive compensation, the whole process of conference on executive compensation becomes more transparent. Since the transparency of special payments for non performance will be increase that shareholders will reduce the expectation for surprises (Wilson, as cited by BBC News, 2013). Exten-Wright (2012) emphasizes that the rights of shareholders for the remuneration process are useful to sanction the unfairly compensation policies. In addition, shareholders can avoid using reject the re-election for directors or any other extreme way to express the criticism about compensation structure by using a targeted program. Aviva event (Treanor and Kollewe, 2012) is a typical case which shareholders used tough attitude through high percentages, with 54% against votes, to vetoing the reappointment of directors before binding vote term published. Shareholders unexpectedly abstain from a large number of voting, which nearly 60 per cent, to boycott Aviva s chief executive, Andrew Moss. The irritant approach will make shareholders to obtain a

Coming Together - 855 Words

The Louisiana Purchase is arguably the greatest real estate deal in history. It more than doubled the size of the United States. We gained approximately 530 million acres of land for 15 million dollars; about four cents an acre. Before the purchase, the French had control over the land west of the Mississippi River. Therefore, by gaining this land, America also gained control of the Mississippi River and correspondingly, access to the Gulf of Mexico and the port of New Orleans. Because of The Louisiana Purchase, Americans had the right to trade profitable products at the port of New Orleans and the country became more independent. Also, the purchase provided America with the opportunity for westward expansion, which would result in the†¦show more content†¦It declared an armistice, or end to the fighting. Although the treaty did not address the issues of impressment or neutral shipping rights, Americans were eager for peace and welcomed the treaty. Other events that contribu ted to independence and nationalism were the decisions of John Marshall in the Supreme Court. His cases were all attempts expand the power of the federal government. In one of his most famous cases, Marbury VS Madison in 1803, The Supreme Court declared that the law on which Marbury based his claim was unconstitutional, and therefore the court refused to order Madison to give Marbury his money. This case showed the use of the Judiciary Act of 1789, which ensured that Congress exercises only those powers granted to them by the Constitution. Because of this act, the rights of the people are protected by the courts. In another case of his, Dartmouth College VS Woodward in 1816, the New Hampshire legislature attempted to change Dartmouth College - a privately funded institution - into a state university. The Supreme Court decided that the establishment of the college predated the state so it had no power to make it a public institution. The decision settled the nature of public versus p rivate charters and resulted in the rise of the American business corporation and the free American enterprise system. Lastly, there was the Gibbons VS Ogden case, in which Ogden took Gibbons to court in order to get him to stop driving hisShow MoreRelatedAnalysis Of Henry Ford s Coming Together 782 Words   |  4 Pagesâ€Å"Coming together is a beginning, keeping together is progress, working together is success†, Henry Ford once said. These wise words spoken by Henry Ford inadvertently relate to how a family works together to adapt to life changes. There are countless obstacles and hardships that people encounter as they journey through life. Having strong, stable, and supportive relationships allow people to be resilient to the hardships. 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They are both similar in that they want to inform the audience of how buying products from their brands can help them contribute to a certain cause. These ads inform consumers of the steps their companies are taking to better society’s health. Coca-Cola’s video wants to inform their American consumers of the fact that for over 125 years, they’ve been bringing people together with theirRead MoreI Am A New Jersey Girl952 Words   |  4 Pageseffected as well as separation from my father and most of all trying to understand and out the pieces together as a child .Growing up was developmental for me now as an adult I understand things from both side. Growing up a Jersey girl is what made me. Once my parents separated, my mother, sister, little brother and I left my grandmother’s house to stay with different relatives until my mother got it together. But our first stop was act my older sister’s house. It was different waken up somewhere differentRead More Things Fall Apart and The Second Coming Essay521 Words   |  3 Pages Things Fall Apart and The Second Coming nbsp; nbsp; nbsp;nbsp;nbsp;nbsp;nbsp; The Second Coming nbsp;nbsp;nbsp;nbsp;nbsp; By William Butler Yeats nbsp; nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp; Turning and turning in the widening gyre nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp; The falcon cannot hear the falconer, nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp; Things fall apart; the centre cannot hold; nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp; Mere anarchy is loosened uponRead MoreMy Very Good Friend From High School, Maeleigh, And Her Recent Girlfriend930 Words   |  4 PagesI interviewed my very good friend from high school, Maeleigh, and her recent girlfriend, Anna. Maeleigh and Anna have completely different â€Å"coming out† stories at this point in their lives. Growing up with Maeleigh, I was able to see how her life was affected by being gay. I know more about her lifestyle and story than most would and it was difficult for her to figure herself out. Mae was very confused and distraught as she got older and she started to realize she was not the so called â€Å"normal† littleRead MoreAnalysis Of Alison Bechdels Fun Home1350 Words   |  6 Pagesher story in order to show how these objects play a much deeper role between not only comprehending her sexuality, but her understanding of her choppy relationship with her father. The end result is a series of connections that bring the two closer together than they ever were. Alison begins to question her sexuality in the third chapter of the novel. She discusses how her homosexuality was a â€Å"theoretical and untested hypothesis†(Bechdel 58) hinting at her confusion towards what being a lesbian isRead More Essay on themes in Things Fall Apart and Second Coming861 Words   |  4 Pages Similar Themes in Things Fall Apart and The Second Coming nbsp; nbsp; The novel Things Fall Apart examines African culture before the colonial infiltration. Achebes novel forces us to examine the customs and traditions that make up an informal culture. At times we may find some their practices appalling, but Achebe makes us realize that the traditions and customs are what essentially hold the Ibo together. Achebe wrote Things Fall Apart with the intention of changing the common viewRead MoreClassic Coming of Age Stories in A White Heron by Sarah Orne Jewett and The Man Who Was Almost A Man by Richard Wright935 Words   |  4 PagesReading coming of age stories are always interesting and at times nastolgic. Coming of age stories typically include a young protagonist forced to make a grown decision which is a transition to their first move into adulthood. In a sense, these stories show the protagonist shifting from innocence to gaining experiences. The two coming of age stories that we read in class were â€Å"A White Heron† by Sarah Orne Jewett and â€Å"The Man Who Was Almost A Man† by Richard Wright. Both being coming of age storiesRead MoreThe Sun - Original Writing1000 Words   |  4 Pagescolor as the sky when the sunlight shine. Each day, as the cloud leave, the sun is shining with a little wind whispering, she would sing a song, a marvelous song she wrote. In front of the beautiful dazzling orange sunlight, pressing her rough palms together, tightly holding her both wrinkled hands up, she would peacefully pray to a luminous sun. One morning, the old thin women awoke; she slightly lifted her lips up and smiled. Pressing her palm against the newspapers on the floor that she use to sleep

The Ethics Of Business Ethics Essay - 2711 Words

Business Ethics Business ethics is a type of professional ethics or applied ethics which examines moral problems and ethical principles that come up in a corporate environment. It is applied to every aspect of conducting business. According to Milton Friedman, a company has the responsibility to generate as much revenue as it can while still conforming to the basic rules that society has set. These rules include the ones embodied in customs as well as in law. Similarly, Peter Drucker stated that the standards set for personal ethics should cover all situations in business. There are various perspectives of looking at ethics. This includes deontological theory, teleological theory and natural law theory. Deontological theory The term ‘deontological’ stems from an ancient Greek term that means ‘duty’. This position of ethics is normative. It determines morality of a deed based on whether it adheres to the rules. In this perspective, ethics is determined by asking what the right action to take is instead of asking what is good. What is looked at is whether the action to be taken is right in itself. However, at this point, the consequence of the action is not considered. According to Immanuel Kant, the foundation of morality is found or located in reason. He proceeds to state that a person should act since it is their duty. Teleological theory The term ‘teleological’ is drawn from the word ‘telos’ which means outcome or end. This theory of ethics derives moral obligation or dutyShow MoreRelatedEthics And Ethics Of Business Ethics1304 Words   |  6 PagesBusiness Ethics Varun Shah University of Texas at Dallas Business Ethics Morals are a crucial part of life. Without having principles one would never be able to distinguish the right from wrong and good from evil. Just as it applies to life in general, ethics is an integral part of doing business as well. When we here the term Business Ethics in our work place, we usually do not take it seriously and brush it off saying ‘it’s just a simple set of basic rules like not cheating and so on’. ThisRead MoreEthics And Ethics Of Business Ethics1624 Words   |  7 Pagesinvestors losing their retirement accounts and many employees lost their jobs (Accounting-Degree.org, 2015). Crane and Matten (2010) argue â€Å"After all, despite many years of business ethics being researched and taught in colleges and universities, ethics problems persist and the public remains sceptical of the ethics of business†. The big problem we face is that ethical standards are declining because of insider trading of stocks and bonds, bribery, falsifying docume nts, deceptive advertising, defectiveRead MoreEthics And Ethics Of Business Ethics1200 Words   |  5 PagesEthics meaning in simple way for average person is what is right from wrong. According to Chris MacDonald (2010)† Ethics† can be defined as the critical, structured examinations of how we should behave - in particular, how we should constrain the pursuit of self-interest when our actions affect others. â€Å"Business ethics is the applied ethics discipline that address the moral features of commercial activity (Business ethics, 2008).Working in ethical way in business has a lot of benefits which can attractRead MoreThe Ethics Of Business Ethics1471 Words   |  6 PagesReview Nowadays, the concern for business ethics is growing rapidly in the business community around the world. Business ethics are focused on the judgment of decisions taken by managers and their behaviors. The issue regarding these judgments is the norms and cultures that shape these judgments. Business ethics are concerned about the issue, how will the issue be solved and how will it move ahead along the transition analysis as well (Carroll, 2014). Business ethics can be addressed at differentRead MoreBusiness Ethics : Ethics And Business943 Words   |  4 Pagesdiscussions in Business is Ethics. Some people believe that the decisions businesses make in interest of the business has no place in ethics and that they are essentially amoral. These businesses believe that their main objective is to simply make a profit and that it does not affect the success of the business. Whereas some businesses believe that they have to take ethics into consideration, in order for their business to be a success. Richard T. De George (1999) states that ethics and business do notRead MoreThe Ethics Of Business Ethics Essay1097 Words   |  5 PagesResource A discusses how ethics is crucial in business. There are three key ideas used to understand this. Firstly, making ethically wrong decisions tend to cause more upset than other general mistakes as purposeful unethical actions are not as easily forgiven or forgotten. Secondly, ethics provides businesses with a broader understanding of everything to do with their business. Business ethics is effectively just business it its larger human context. Thirdly, being unethical can tarnish the publicRead MoreThe Ethics Of Business Ethics1064 Words   |  5 Pages　　　　Business Ethics Ethics can be viewed as the rules and values that determine goals and actions people should follow when dealing with other human beings. However, business ethics can be defined as moral principles of a business. It examines moral or ethical problems that arise in a business environment. Generally, it has both normative and descriptive dimensions. Organization practice and career specialization are regarded as normative whereas academics attempting to understand business behaviourRead MoreThe Ethics Of Business Ethics757 Words   |  4 Pagesdeciding what to do in certain situations, ethics is what guides an individual to act in a way that is good, or right. Those involved in business settings apply ethics to business situations, known as business ethics. It is expected of businesses, small and large, to follow business ethics. There is a particular framework businesses are to follow. However, the reoccurring news headlines of poor business ethics prove differently. Poor busine ss ethics include bribery, corporate accounting scandalsRead MoreThe Ethics Of The Business Ethics1431 Words   |  6 Pages BUSINESS ETHICS INTRODUCTION:- Presentation Ethics are exceptionally regular and essential good esteem that helps us to take the right choice where we think that it hard to pick between our own advantages and the correct thing to do. We are going to talk about three sections of morals Behavioral morals, Bounded ethicality and last one is irreconcilable situation. As from the names of these parts of morals, its verging on clarifying the significance of it. It clarifies why great individualsRead MoreThe Ethics Of Business Ethics1349 Words   |  6 PagesBusiness ethics can be defined as the critical examination of how people and institutions should behave in the world of commerce. There are many subcategories that we may look into when speaking of business ethics, in this essay I will be writing about advertising ethics. Advertising is practically unavoidable in today s world, we see it in the streets, shops, magazines, television, on the internet, hear it on the radio. In this essay I will describe two ethical iss ues in advertising, show why business

Women in Homers Odyssey Essay - 1960 Words

As Agamemnon tells Odysseus, â€Å"Let it be a warning even to you. Indulge a woman never, and never tell her all you know. Some things a man may tell, some he should cover up.† (P.199, Book XI) This is not a revelation for the wayward King. Odysseus treats all women he encounters with the same caution alluded to by Agamemnon when the shade tells him how his treacherous wife Clytemnestra acted in a way that defiled all women kind. Agamemnon is giving words to the concept of women that existed in Greek times, and still exists today although it is hopefully not expressed as much. Even before Odysseus speaks to his dead friend, he reveals the same attitude in the encounters that he has with women along his journey home. Each and every†¦show more content†¦Both of these transgressions are against the natural order. All though the Gods in Greek times were much more human that in other cultures, it was not tolerated for them to behave with mortals in this way, as explained by Kalypso’s arguments with Hermes about why the two should have to separate. Odysseus for his part is not without a lie of his own; although in this particular case it may be that it is more a self-delusion than an outward lie. Odysseus cries every morning on the shores of the island, longing for home. But he also goes back to bed with Kalypso every night, showing an apathetic nature that constitutes a rare weakness on the part of the King. Very seldom is he shown in such an unflattering light. This self-delusion is a part of his need to deceive. A Goddess is not as susceptible to a lie as a mortal woman, and so Odysseus deceives himself to compensate. Most of his other confrontations are not as subtle. His encounter with Kirke, for instance, is a much cleaner deception, on the part of the adventurer and the Goddess. Kirke lures the men into her cave with promises of food and treasure, but then transforms them into animals. Odysseus’ men, famished from their days at sea, let down their guard and approach the cave. When they are trapped, Odysseus does not hesitate to come and rescue them. His answer to the Goddess is another deception, a similar tactic to that of all the various encounters that he has, both with women and with menShow MoreRelatedThe Odyssey : The Role Of Women In Homers Odyssey966 Words   |  4 Pagesinteractions. The Odyssey portrays what is right or wrong in relationships between god and mortal, father and son, and man and woman. In the epic poem, the role of women is a vital demonstration of Ancient Greece. The women in the epic are unique in their personality, motives, and relationships towards men. In Homers, The Odyssey, all women are diffe rent, but all of them help to represent the role of the ideal woman. Homers epic describes the world of women in Ancient Greece, a time where women were seenRead MoreThe Role Of Women In Homers Odyssey1165 Words   |  5 Pages The Role of Women In The Odyssey In literature, are women used as important roles or only used as love interests and for their beauty? This question has been around for a long time and there is still no clear answer. One literary example is the women characters in Homer’s The Odyssey- the ancient Greek epic of Odysseus and his journey home to Ithaka. When on his journey, Odysseus meets many women who are ultimately used as alluring characters to distract Odysseus on his journey home. ThroughoutRead More Women in Homers The Odyssey Essay627 Words   |  3 PagesHomers The Odyssey Women are important to the plot and overall theme of the Odyssey. In fact, without many of the women there would not be a complex plot to this epic poem. In the narrative and in Greek society women played a variety of roles, as mothers, herons, and many other strong roles yet, they were treated as less significant, and were made to be loyal and submissive to men. The women were required to wait on and sulk for love, as Penelope did for 20 years. In Greek society, the women hadRead MoreEssay about The Women of Homer’s Odyssey1336 Words   |  6 PagesThe Women of Homer’s Odyssey   Ã‚  Ã‚   Homer’s Odyssey, by, is typically seen as a male dominated poem: the hero is male and the majority of the characters are male.   We follow the men on their attempt to return to Ithaca.   However, even though women are not the main characters, they are omnipresent through much of the story.   Women play a very important role in the movement of the story line: they all want to marry, help or hurt Odysseus.   During the course of his journey, Odysseus meets three differentRead More Powerful Women of Homers Odyssey Essay516 Words   |  3 Pages The Powerful Women of Homers Odyssey nbsp;nbsp;nbsp;nbsp;nbsp; nbsp;nbsp;nbsp;nbsp;nbsp; Homers Odyssey depicts women as strong subjects-they are real substantive characters. Women in this poem are tough, strong-willed and are treated with the respect and seriousness they deserve.nbsp; Homer characterizes the women in his poem as the real counterparts of men-they have real feelings, real plans and are able to accomplish them on their own. nbsp; nbsp;nbsp;nbsp;nbsp;nbsp;Read More The Role of Women in Homers The Odyssey Essay695 Words   |  3 PagesThe Role of Women in Homers The Odyssey Women form an important part of the folk epic, written by Homer, The Odyssey. Within the story there are three basic types of women: the goddess, the seductress, and the good hostess/wife. Each role adds a different element and is essential to the telling of the story. The role of the goddess is one of a supernatural being, but more importantly one in a position to pity and help mortals. Athena, the goddess of wisdom,Read More The Cunning and Deceitful Women of Homer’s Odyssey Essay1483 Words   |  6 Pages The Cunning and Deceitful Women of Homer’s Odyssey One of the most famous works from the early Greek era is Homer’s Odyssey. It details the journey home of a war hero, Odysseus. His homecoming entails many adventures, each presented as a separate episode that he must overcome. Though the varied episodes differ in terms of characters and settings, most are based on similar patterns of plot and theme. The themes that are most emphasized are forgetfulness, a willingness to risk pain for pleasureRead More Comparing the Deceitful Women of Homers Odyssey and the Bible1184 Words   |  5 PagesThe Deceitful Women of Homers Odyssey and the Bible Across all barriers, women have always brought pain, suffering, and aguish to the men as demonstrated in both Homers Odyssey and the Bible. With their beauty and grace, temptresses like the Sirens and Delilah lure men into their grasps, only to later steer them to their ruin. Other times, they use their cunning abilities and deception, as Circe and Jezebel did, in order to entice men into doing things that they normally would neverRead MoreEssay about Portrayal of Women in Homers Odyssey719 Words   |  3 PagesThe Portrayal of Women in  Homers Odyssey In the first section of Odyssey, mortal women are presented to us as controlled by the stereotypes and expectations of the culture of the day, and it is only within that context that we can consider the examples Homer provides of women to be admired or despised. He provides us with clear contrasts, between Penelope and Eurycleia on the one hand, and Helen and Clytemnaestra on the other. In Penelope’s case, it is made clear that her freedom of actionRead More The Role of Men and Women in Homers The Odyssey 1173 Words   |  5 PagesWho is the ideal Greek man? It can be argued that through the illustration Homer weaves throughout the Odyssey, Odysseuss character traits cast a lens as a prime example of a man in ancient Greek society. He appears to be brave, intelligent, well-spoken, and clever. Much of his knowledge is discovered by his travels, absorbing the local culture around him and using it as a guide. Aristocratic and a warrior. Perhaps the best warrior of all time. It is the Iliad which presents these attributes initially

Corruption in Procurement Free Essays

UNIVERSITY OF DAR ES SALAAM BUSINESS SCHOOL| AN ASSESSMENT OF CORRUPTION IN THE PROCUREMENT PROFESSION IN GOVERNMENT: CASE IN TANZANIA. | | BY| BERNARD, HELLEN| REG. NO. We will write a custom essay sample on Corruption in Procurement or any similar topic only for you Order Now 2009-06-00929 | RESEARCH PROPOSAL SUBMITTED FOR APPROVAL TO CARRY OUT RESEARCH FOR THE DEGREE OF MASTERS OR BUSINESS ADMINISTRATION. | Table of Contents 1. 0 INTRODUCTION 1. 1 background3 1. 2 STATEMENT OF THE PROBLEM4 2. o research aim6 2. 1 RESEARCH OBJECTIVES6 3. 0 RESEARCH QUESTIONS†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦6 3. 1 RESEARCH HYPOTHESIS. 7 4. 0 LITERATURE REVIEW 4. 1 CONCEPTUAL LITERATURE†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦8 4. THEORETICAL FRAMEWORK†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â ‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 10 4. 3 EMPIRICAL LITERATURE†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 12 5. 0 METHODOLOGY†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 14 REFERENCES†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢ € ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 17 1. 0. INTRODUCTION 1. 1 Background The Tanzania Government has long realized the importance of public procurement to the economic development of Tanzania and hence to the fulfillment of key objectives within the national Poverty Reduction Strategy. To this effect, Tanzania was one of the first countries in Sub-Saharan Africa to enact a law modeled on the UNCITRAL model law. Since 1996, when the first country procurement assessment report (CPAR) was carried out, the Government has been working closely with the World Bank and other development partners to enhance the economy and efficiency of its procurement system and to make it more transparent and accountable. The Government has long acknowledged that there is rampant corruption in Tanzania and has been fighting hard to reduce it. It is estimated that at the national level about 20 percent of the government expenditure on procurement is lost through corruption, mainly through kick-backs and bogus investments that have to be written off. Considering that public procurement accounts for about 70 percent of the entire government expenditure budget, this translates to a loss of TShs 300 billion (USD 300 million) per year, enough to finance the combined annual recurrent budgets of the ministries of health and education. Clearly such a loss is economically unsustainable. Major losses occur in construction and supply contracts, which are the major avenues for corruption, particularly at the local government level. The need for enhancing the transparency of the procurement system cannot therefore be overemphasized. The Government of Tanzania is fully aware that its public procurement is still weak and needs to be strengthened substantially to enable it to ensure that the procurement laws and institutions become effective tools in the efficient and transparent management of public funds. Strategic management in the public sector begins by looking up toward politics -the current expectations and aspirations of citizens and their representatives and the older political agreements formally enshrined in the legislation that defines public managers’ mandates for action. Corruption had been inculcated in the political culture of most underdeveloped countries; while, it still elicits the criticism and opposition of the public, it has nonetheless been accepted as a fact in the political life. One of the primary areas of corruption is in the procurement process. Grounded on the idea that, the bread and butter of politicians exists in this aspect, the procurement process has been the locus and target of most politicians aiming to get a slice of the cake. In third world countries, this part of the cake proves to be the life of people. The foreign aid given by international organizations like the World Bank and the International Monetary Fund and the government revenue from taxes is easily lost once the budget is distributed to departments and the â€Å"purchase† of equipments and materials has begun. . Earlier on we questioned the assumption or perception that corruption, especially petty corruption is a function of low pay. In our review of theories of motivation we noted that there is consensus among theorists on motivation on pay being a necessary, but not sufficient condition for an employee to perform at a minimum level in an organization. Where an employee has a perception that the level of compensation given by the employer cannot and will not meet basic living/existence needs, and the employee is not in a position to exit from the organization, he/she will adopt deviant work behavior, which will include a number of income maintenance strategies, including corruption to address the income shortfall. 1. 2 statement of the problem The procurement process has been the locus of government corruption- unless this can be addressed; the citizens of Tanzania will continue to suffer. It is necessary that strategies and measures be introduced in the government procurement profession to reduce the corruption in this process and in effect, corruption in the government. Procurement corruption is deeply rooted in the political culture and traces its roots on the nature of governments. As long as the nature of government and politics remains to be relatively immature, corruption in the procurement process will remain. Thus, the need for strategies to hamper this occurrence arises. A focus on newspaper reports, editorials and letters from readers in any of the last ten years would make one conclude that this country has been eaten away by the corruption scourge. Contrast the foregoing situation with what obtained between 1961, as we became independent and the late 1970s. The decade following Tanzania’s independence (1960-1970) did not manifest intense corruption. Where it took place it tended to be restricted to low-level officials who demanded and received negligible sums of money. As the country expanded the public sector and public administration institutions progressively decayed, entailing the rise of bureaucratic malfunctioning, opportunities for rent-seeking behavior and asking and offering bribes started creeping in. In the same period, the cost of living rose dramatically while public service pay remained static or declined. Public officials became driven by a culture of survival and they progressively adopted deviant behavior patterns discussed earlier in the paper, including the use of corruption as an income maintenance strategy. To address and control the trend of increased corruption, the Nyerere Government enacted the leadership code as part of the Arusha Declaration which had been adopted in 1967 and dedicated Tanzania to the pursuit of Ujamaa and Self Reliance as its ideology. While moral suasion through a socialist code of conduct was making its contribution to the fight against corrupt tendencies, the country came to experience a major economic crisis following the oil crisis and the after effects of the war with Idd Amin in the late 1970s and early 1980s, with double digit inflation, major fiscal deficits and negative economic growth. That situation saw the state lose its ability to pay public servants a living wage. Official salaries, even at managerial and executive levels, fell below subsistence needs, creating incentives to look for side incomes. As the state controlled economy declined, an informal one arose to take its place. Smuggling became rampant. In the end, the harsh realities of scarcity and poverty overwhelmed the dedication to socialist equality and corruption became embedded in Tanzania society. 2. 0 RESEARCH AIM This study aims to propose measures and strategies that could resolve the issue of government corruption in the procurement process. . 1 research objectives This research paper aims to: 1. Identify the different procurement corruptions in governments of Third World countries 2. Determine the stages of the procurement process and discover where corruption happens 3. Evaluate the nature of Third World Government and politics and the corruption in procurement 4. Propose measures that can reso lve the issue of corruption in the procurement profession 3. 0 RESEARCH QUESTIONS This study seeks to answer the following questions: 1. What are the indicators of procurement corruption and how extensive is it mong governments (Developed, developing and Third World) 2. What are the different corrupt practices in the process of procurement? 3. Outlining the procurement process, what stage(s) does corruption happen? 4. In relation to the nature of Third World Governments, what is their relation and to what degree that these two variables (corruption in procurements and government) affect each other? 5. What are the measures and strategies that governments have employed to address this issue? 3. 1 Research hypothesis 1. The nature of government and politics in a country is significantly related to its corruption practices 2. The more accountable the government, the lesser the tendency of corruption in the procurement process 3. Further, procurement corruption is directly related to the lack of transparency in government purchases. 4. 0 LITERATURE REVIEW 4. 1 Conceptual literature CORRUPTION Corruption is a very widespread phenomenon with most governments having a least some. While corruption usually meets with disapproval, it may have some redeeming features (Tullock, 1996). It may make possible smaller or no salary payments to officials who, if carefully supervised, will still carry out their functions on a fee-for-service basis (Tullock, 1996). Transparency International (TI) has chosen a clear and focused definition of the term: Corruption is operationally defined as the misuse of entrusted power for private gain. TI further differentiates between â€Å"according to rule† corruption and â€Å"against the rule† corruption. Facilitation payments, where a bribe is paid to receive preferential treatment for something that the bribe receiver is required to do by law, constitute the former. The latter, on the other hand, is a bribe paid to obtain services the bribe receiver is prohibited from providing. The cost of corruption The cost of corruption is four-fold: political, economic, social, and environmental. On the political front, corruption constitutes a major obstacle to democracy and the rule of law. In a democratic system, offices and institutions lose their legitimacy when they are misused for private advantage. Though this is harmful in the established democracies, it is even more so in newly emerging ones. Accountable political leadership cannot develop in a corrupt climate. Economically, corruption leads to the depletion of national wealth. It is often responsible for the funneling of scarce public resources to uneconomic high-profile projects, such as dams, power plants, pipelines and refineries, at the expense of less spectacular but more necessary infrastructure projects such as schools, hospitals and roads, or the supply of power and water to rural areas. Furthermore, it hinders the development of fair market structures and distorts competition, thereby deterring investment. The effect of corruption on the social fabric of society is the most damaging of all. It undermines people’s trust in the political system, in its institutions and its leadership. Frustration and general apathy among a disillusioned public result in a weak civil society. That in turn clears the way for despots as well as democratically elected yet unscrupulous leaders to turn national assets into personal wealth. Demanding and paying bribes become the norm. Those unwilling to comply often emigrate, leaving the country drained of its most able and most honest citizens. Environmental degradation is yet another consequence of corrupt systems. The lack of, or non-enforcement of, environmental regulations and legislation has historically allowed the North to export its polluting industry to the South. At the same time, careless exploitation of natural resources, from timber and minerals to elephants, by both domestic and international agents has led to ravaged natural environments. Environmentally devastating projects are given preference in funding, because they are easy targets for siphoning off public money into private pockets. PROCUREMENT Procurement is the full process involved in acquiring required goods, services or works. Procurement involves identifying the requirement of the purchasing authority, building a list of minimum requirements, and then scoring any interested parties who meet the minimum requirements, usually offering the highest score based on the most economically advantageous bid, commonly known as â€Å"best value†. Part of the Procurement process is also to manage the contract once awarded, to ensure that the successful suppliers, or suppliers, are providing a quality service. Collaborative contracts are becoming more commonplace; where multiple public bodies will combine their requirements and run a single Procurement process to meet their merged requirements. Due to the higher volume of business promised by collaborative contracts, suppliers will usually offer larger discounts. Collaborative contracts are usually led by one public body, acting on behalf of the others. In addition to this, some Procurement Centers of Expertise set up and manage contracts on behalf of public bodies, allowing all public bodies to use these collaborative contracts. Some examples of these Centers of Expertise are OGC, Buying Solutions and Procurement Scotland. The stage of the Procurement cycle when suppliers are invited to submit bids is known as the Tendering process. Usually, in addition to submitting their monetary bid, suppliers are required to respond to a questionnaire which the public body has put together with the intention of identifying and eliminating suppliers who are unable to meet their basic requirements, thereby preventing their tender from being successful regardless of whether they have the most economically advantageous bid. . 2 Theoretical framework The systematic study of political corruption encompasses matters of definition, typology, cause, and consequence, linked by a common theoretical framework. A substantial body of literature explores these issues, but many problems exist. The countless definitions inadequately set out the fundamental normative and behavioral dimensions of corruption and fail to incorporate the phen omenon into a broader theoretical framework or to deal accurately with the question of private interests. Typologies of corruption, though equally rife, also seem to lack clear theoretical relevance. Existing explanations of corruption can be attacked for projecting confusing and contradictory hypotheses, for being fragmentary, and for failing to differentiate various types of corrupt behavior; those centering on the functions of corruption also seem incomplete. Some, for instance, underscore the positive effects of corruption in integrating ruling elite but fail to question whether corruption influences feelings of legitimacy toward government or inspires destabilizing protests and mobilizations. As a form of deviant political behavior, corruption is political conduct contrary to political norms. This definition underscores both its normative and behavioral components. The normative aspect of corruption centers on the evaluative standards or rules that determine political propriety: the criteria used to judge the legitimacy or illegitimacy (i. e. , the â€Å"corruptness†) of a political act; the behavioral aspect corresponds to observable actions (Morris, 1991). The norm provides the standard by which all acts of government are to be interpreted and judged. Accordingly, any private usurpation of that pertaining to the public domain, which negates this principle, invites condemnation. An important issue that warrants attention concerns the role of personal gain or interest. Including personal gain or what is tantamount to private interest in a definition of corruption presents two major problems. First, it is generally held that all acts are a function of personal gain; in formal theory, this is referred to as â€Å"rationality. † Consequently, all acts by government officials, whether corrupt or otherwise, are thought to be motivated by a rational promotion of private interest. In other words, a non corrupt act is promoted by personal interest just as is a corrupt act. Since personal interest is an assumption of human behavior and a constant, it need not be included in a definition Strategic management in the public sector begins by looking up toward politics -the current expectations and aspirations of citizens and their representatives and the older political agreements formally enshrined in the legislation that defines public managers’ mandates for action. Politics, and the laws that politics produce, deserve this pride of place for three key reasons. First, it is this realm that managers must search to discover what purposes are deemed publicly valuable and can, therefore, be practically and normatively sustained as the focus of their managerial efforts. It is in and through politics that they can discover and help shapes their mandates for action. Second, political institutions grant public managers the resources they need to accomplish their operational purposes–including money and authority over their own organizations and over those beyond their organizations who can contribute to the managers’ purposes. Third, it is to politics and law that public managers are both theoretically and practically accountable; their performance is graded and their reputations made within this realm. Procurement contracting often entails large monetary sums and involves widely known or powerful people inside and outside government. Thus, this kind of corruption can be especially damaging to a country in terms of distorted incentives, undermined public trust, and inequitable distribution of national budgets. This is particularly prevalent in Third World countries where the political socialization of people seems to accept corruption as a part of the political culture. Among the principal types of procurement corruption includes: collusion in bidding (leading to higher costs/prices for the city, payments for which may or may not be shared with corrupt officials); kickbacks by firms to â€Å"fix† procurement competition; and bribes to officials who regulate the winning contractor’s behavior (which may permit lowball bids with subsequent cost overruns and unnecessary changes in contract specifications) (Klitgaard, MacLean, and Parris, 2000). 4. 3 Empirical literature Corruption is about economics, gaining power, maintaining power and unfortunately to some, survival (Green, 2000). Generally, it’s been my experience that corruption usually involves bribery, kickbacks, gratuities and gifts to government employees from individuals doing business or attempting to do business with the government. A large percentage of corruption taking place within governments and businesses worldwide rests within the procurement of goods and services. The movement toward decentralization, accountability, and democratic forms of government at the local level is gathering momentum (Klitgaard, MacLean, and Parris, 2000). In this context, the enormous costs of corruption are being explicitly recognized, as is the urgent need to correct governmental malfeasance (Klitgaard, MacLean, and Parris, 2000). Corruption is an entrenched symptom of misgovernance often reflected in patronage, red tape, ineffective revenue-generating agencies, large scale bribery in procurement, and failure to deliver services to city dwellers When the government needs a good or service, the city government has the two broad alternatives of making it or buying it: that is, the city can provide the good or service itself, or rocure it from the private sector (Klitgaard, MacLean, and Parris, 2000). Corruption is one of the dimensions of this choice. Because contracting is â€Å"where the money is†, most government officials are tempted by the lure of procurement services often at the expense of the public. Recent developments and current trends are highlighting the role of accountants in governance. Foremost among these are: the increasing concern with rising levels of corruption, the renewal of interest in accountability and transparency as inoculations against corruption; the new government focus on results, benchmarking and value-for-money (the â€Å"new public management†) and the corresponding thrust in the private sector through business process reengineering, knowledge management and intranets — where accounting systems play a major role; decentralization and participation by citizens and NGOs in public management are multiplying the needs for credible accounting information; the privatization of utilities in several countries is increasing the need for regulation, in which accountants have a major role in reducing information asymmetry; the globalization of corporate finance has enhanced the need for global standards of accounting and auditing; the Asian crisis has highlighted the weaknesses in transparency, in financial sector regulation and in corporate g overnance generally in a number of countries (Bennett,   2000). There are several measures that could be done in order to reduce the incidence of corruption. First, reducing the scope and role of personality politics. An increase in public policy debates and other activities of government, opening the closed doors, and permitting greater public scrutiny of official processes would clearly have such an impact. Generally, the more public government affairs become, the less corrupt they can be (Bennett,  2000). Enhancing the autonomy of the state’s subsystems would also reduce the likelihood of corruption. This could be pursued, for instance, by creating an effective civil service system or merit system or opening up grass-roots political involvement. Such reforms would cripple the centralization of recruitment and thereby temper the loyalty patterns that currently prevail. Strengthening the autonomy and role of Congress or democratizing corporate organizations would be steps in this direction (Bennett,  2000). Strengthening social organizations would also impinge on corruption. This could be done by reducing the tutelary role of the state and lessening the dependency of social organizations on the state or by enhancing popular input into the organizations themselves. Not only must businesses or union’s articulate demands on the government, but such organizations must be structurally responsive to the demands of their constituents. Tying the fate of leaders of social organizations to criteria internal to the group rather than those determined by the state would greatly inhibit current patterns of corruption (Bennett,  2000). 5. 0 METHODOLOGY This chapter will discuss the method of research to be used, the respondents of the study, the sampling technique, the instrument to be used, the validation of the instrument, the administration of the of the instrument and the statistical treatment of the data that will be gathered. Research Methodology and Techniques for data collection This study will use the descriptive approach. This descriptive type of research will utilize interview, observation and questionnaires in the study. To illustrate the descriptive type of research, the researcher will be guided by Calmorin when he stated: â€Å"Descriptive method of research is to gather information about the present existing condition. The purpose of employing this method is to describe the nature of a situation as exists at the time of the study and to explore the cause/s of particular phenomena. Proposed subject Population/Sample The general population for this study will be composed of government officials and personnel in the procurement process, randomly selected private companies who have been involved in the bidding process and randomly selected citizens. I will use a combination of cluster and random sampling. First, I will cluster the respondents from the government, the private sector and the public sector. To make the sampling easier for every specific cluster, I will seek the aid of any anti-corruption non-government organization to facilitate the names and addresses of the respondents or have them together in one place (i. e. in an organizational meeting) so that the surveys can be given in one session. I will pick one hundred (100) respondents per cluster for a total of three hundred (300) respondents. Validation of the Instrument For validation purposes, I will initially submit a survey questionnaire and after approval, the survey will be given to five responden ts from the government, private corporations and the public sector. After the survey questionnaire will be answered, I will ask the respondents for any suggestions or any necessary corrections to ensure further improvement and validity of the instrument. I will again examine the content of the survey questionnaire to find out the reliability of the instrument. I will exclude irrelevant questions and will change words that would be deemed difficult by the respondents, too much simpler terms. Administration of the Instrument The revised instrument will then be administered to the respondents of the study which will be chosen through a combination of cluster and random sampling. I will exclude the ten respondents who will be initially used for the validation of the instrument. I will also tally, score and tabulate all the relevant data in the survey questionnaire. Statistical Treatment of Data When the entire survey questionnaire will have been collected, the researcher will use statistics to analyze all the data. The statistical formulae to be used in the second and third part of the survey questionnaire will be the following: 1. Percentage – to determine the magnitude of the responses to the questionnaire. 2. Weighted Mean 3. I will use chi-square to relate the participation rate of the government employees, companies and the public sector. I will be assisted by the SPSS in coming up with the statistical analysis for this study. Resource, Confidentiality and other consideration The survey respondents and interviewees’ identities will be held confidential. Only I will have the knowledge on their identities and utmost secrecy will be provided. Further, personalities who do not want to be quoted in interviews will not be disclosed. REFERENCES. 1. Klitgaard, Robert, MacLean, Ronald and Parris, Lindsey, Corrupt Cities: A Practical Guide to Cure and Prevention, Ics Press, 2000 2. Bennett, Anthony, â€Å"The Role of Accounting in Good Governance†, In Carter, Williiam, Davies, Mark, El, Yassin and Ford, Kevin, Government Ethics and Law Enforcement: Toward Global Guidelines, Praeger Publishers, 2000 3. Green, Vincent, â€Å"An Approach to Investigating Corruption in Government†, In Carter, Williiam, Davies, Mark, El, Yassin and Ford, Kevin, Government Ethics and Law Enforcement: Toward Global Guidelines, Praeger Publishers, 2000 4. Morris, Stephen, â€Å"A State-Society Approach to the Study of Corruption â€Å", Corruption Politics in Contemporary Mexico, University of Alabama Press, 1991 How to cite Corruption in Procurement, Papers

Financial Analysis Genesis Corporate Finance

Question: Describe about the Financial Analysis for Genesis Corporate Finance. Answer: Introduction AGL Eenrgy boasts of a long history which commenced in 1837, although the current company came into existence in 2006 only. It is listed on the ASK and a part of the ASX 200 index. It is an integrated energy player which is involved in production of electricity along with retailing of the same to both commercial and residential customers. The company has an impressive generation portfolio which consists of traditional coal based thermal power plants along with gas based and also renewable sources portfolio. The renewable energy generation portfolio possessed by the company is largest for any Australian private company (AGL Energy, 2015) Genesis energy came into existence as a result of the energy reforms that took place in the New Zealand electricity market in the 1999. The company is involved in generation of electricity and also is involved in the retailing of LPG and natural gas. The company is based in Auckland and listed on both Australian and New Zealand stock exchanges. The company is the largest retailer of natural gas and electricity in NZ with an estimated share of 42% and 26% respectively (Genesis Energy, 2015). Income Statement With regards to the income statement of AGL Energy, it is evident that that the revenue growth is quite muted. However, the increase in the expenses is comparatively higher. However, for Genesis Energy there is an increase in the revenue on account of increased generation and supply coupled with increase in the profitability due to decreasing expenses. The comparison of the profitability ratios for the two companies is shown below (AGL Energy, 2015) It is apparent from the above figures that both the ROA and net profit margin for the company have declined. This may be attributed to the lacklustre growth in revenue primarily because of the pressures in the consumer market due to greater competition. Additionally, the cost for the production CER (Certified Emission Reductions) also increased besides the $ 15 million integration cost for New Energy.. Further, the decline in profitability could also be explained on the back of the lacklustre performance in the other operations division which constitutes of thermal electricity production along with electricity production from source such as natural gas and other renewables (AGL Energy, 2015). Genesis energy has increased the revenue on the back of greater electricity generation from coal and hydro power plants coupled with decreased expenses related to employees and fuel management due to the emphasis on digital platforms and increased operational efficiency (Genesis Energy, 2015). Balance Sheet It is evident from the balance sheet of the company at the end of FY2015, the major changes have been in the fixed assets and also the current liabilities. The fixed assets have witnessed an increase of almost $ 1.6 billion on account of increase in PPE. Besides, the current liabilities have increased due to increase in short term borrowing from $ 45 million at the end of FY2014 to $ 443 million at the end of FY2015. The ratios with regards to liquidity and capital structure are presented below (AGL Energy, 2015; Genesis Energy, 2015) On the basis of the above table, it is apparent that the current ratio and quick ratio have declined which is primarily attributed to the increased short term borrowing in the year FY2015 which caused the current liabilities to increase while the current asset level has continued to remain at the last year level only. The debt to equity ratio at the end of FY2015 has witnessed a small decline even though total liabilities have increased fuelled by the increase in current liabilities. This can be explained by the higher percentage increase in the equity on account of increased in share capital by almost $ 1.2 billion besides the increase contributed by the retained profits (AGL Energy, 2015) The sharp decline in current ratio and quick ratio for Genesis is on account of increase in short term borrowings from $ 12.3 million at the end of FY2014 to $ 117.8 million at the end of FY2015. Cash Flow Trends - AGL Energy It is apparent from the cash flow statement of the company that there has been a significant increase in the cash flow to the tune of almost $ 1.4 billion on accounting of investing activities in FY2015. Besides, the cash flow from operations have increased by $ 443 million on account of lower cash payments to suppliers and employers. Due to higher repayment of debt in FY2015 as compared to FY2014, there is a net outflow of $ 207 million due to financing cash flow (AGL Energy, 2015). With regards to Genesis Energy, no major changes have been indicated with regards to any the cash flow statement and the various components are similar to corresponding figures for FY2014 (Genesis Energy, 2015). Market Performance AGL Energy The relevant indicators of the market performance of the company for FY2014 and Fy2015 are presented in the table below (AGL Energy, 2015) From the table above, it is apparent that EPS per share has dipped significantly in the year FY2015 which is but expected as the net profit in FY2015 has dipped in comparison with the previous year and also because there has been an increase in the weighted shares due to fresh issue of shares in FY2015. The dividend per share has increased for the shareholders as the company decided to pay a higher sum of money as dividends to shareholders (AGL Energy, 2015). However, for genesis EPS has increased on back of higher profits and also in line with the higher profits, dividend paid to shareholders per share has also increased (Genesis Energy, 2015). Comparison of Financial Performance AGL Energy and Genesis Energy The comparable set of ratios for the two companies is listed below ((AGL Energy, 2015;Genesis Energy, 2014). Profitability With regards to profitability, it is apparent that Genesis energy has been an outperformer especially in the year FY2015. This may be attributed to the lower portfolio of Genesis with regards to renewable energy as the focus is only on wind and hydroelectric. This is in contract with ACL Energy which also tends to focus on solar and other renewable sources which have underperformed (Damodaran, 2008). Liquidity- The current ratio and quick ratio for both companies is in excess of one which indicates that business is robust. However, the higher liquidity ratios of AGL can be explained on the basis of larger scale of operations and more receivables due to greater contribution from wholesale markets. Gearing The gearing ratios for both the companies are comparable and indicate that these have no long term liquidity issues. This is because the D/E ratio for both companies is lesser than 1. The interest coverage of both companies is impressive which does not indicate any issues (Petty et. al, 2015). Market performance The EPS as expected is greater for AGL energy, however the encouraging trend for Genesis is that its EPS has grown by 100% on a y-o-y basis which augers well for the company. Even though dividend paid by AGL energy is higher in absolute terms in comparison to Genesis but the dividend yield for Genesis is significantly higher. Efficiency Ratios- The debtors turnover of Genesis is significantly higher than that of AGL energy which to an extent is attributed to the difference in the segments served. Conclusion On the basis of the above analysis, it may be concluded that AGL energy has underperformed in FY2015 in comparison to FY2014 with all indicators lagging and this has led to the stock price remaining almost constant with choppy sideways movements. The other operations segment of the company is a drag on the energy markets and it is unlikely that it would turn dramatically. But the company still is robust and in due course as the policy regime becomes more definitive, the company would be in leveraging position. However, Genesis has shown a significant improvement in the various financial indicators in the year FY2015 as is apparent from the positive changes in all ratios and financial indicators. (Parrino Kidwell, 2011). Recommendations It is recommended that the investor should not invest in AGL energy as the underperforming of the companys renewable business is expected to continue. Further, there is uncertainty of policy in Australia with regards to energy prices and also suitable tax structure to promote renewable energy sources which globally are witnessing a soft market (AGL Energy, 2015).. In such scenario, it makes sense to invest into Genesis which pays a dividend yield of almost 6% and has showed encouraging financial performance in FY2015. Also, the significant market share that it commands in the New Zealand market is an additional benefit for the company (Brealey, Myers Allen, 2008). References AGL Energy 2015, Annual Report 2015, Available online from https://www.agl.com.au/about-agl/media-centre/article-list/2015/august/agl-annual-report-2015 (Accessed on August 31, 2015) Brealey, R, Myers, S Allen, F 2008, Principles of Corporate Finance (Global edition), 10th edn, McGraw Hill Publications, New York Damodaran, A 2008, Corporate Finance, 2nd edn, Wiley Publications, London Genesis Energy 2015, Annual Report 2015, Available online from https://www.genesisenergy.co.nz/documents/10180/2699552/Genesis+Energy+Annual+Report+FY2015.pdf/fa13f57b-fd37-4262-9bb2-5c591a55aab3 (Accessed on August 31, 2016) Parrino, R Kidwell, D 2011, Fundamentals of Corporate Finance, 3rd edn, Wiley Publications, London Petty, JW, Titman, S, Keown, AJ, Martin, P, Martin JD Burrow, M 2015, Financial Management: Principles and Applications,6th edn, Pearson Australia, Sydney

Check Study Guide free essay sample

Because encapsulation is a continuous process. Correct: The Correct Answer is: C. 2. If you accept only your encapsulated notions of the world without thinking critically about them , you become a: A. Logical Convert Logical influence Logical egoist Logical theistic 3. Ego defense mechanisms are psychological coping strategies that distort reality to: Help us understand why we do the things we do. Protect ourselves from bad feelings. Keep us from becoming irrational. Keep us from hurting anyone. The Correct Answer is: B. 4.Ego defense mechanisms are barriers to critical thinking because They portray pleasant realities for everyone. They distort reality. They distort our pleasant lives. They are probably rooted in arguments. 5. The captain of a cruise ship, that sank in the Indian Ocean, was asked why he left his ship in a lifeboat while hundreds of passengers were still on board replied, The order to abandon ship applied to everyone, and once the order is given it does not matter when the captain leaves. We will write a custom essay sample on Check Study Guide or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page This is an example of: Denial RationalizationProjection Self-serving biases 6. To assume that your group has richness and diversity of its members, but assume that all other groups are alike is an example of Stereotyping Self-serving bias Projecting The Correct Answer is: A. Not all emotions should be avoided as blocks to clear thinking and insight. There is nothing wrong with our enthusiasm for our friends, family, or even for our political and moral views. However, emotions can become a hindrance to critical thinking when: We allow our emotions to suggest unwarranted conclusions.Enables us to determine the causes of our stress thus becoming more Of a critical thinker. 9. The tendency to engage in ego defense and self -serving biases should decrease as our psychological health increases because: People who are healthy always own up to the totality of who they are, either positive or negative. People who are healthy are more able up to accept the totality of who they are, either positive and negative. People who are healthy always accepts personal fault. People who are healthy are never threatened by the success of others.