On Free Choice of the Will Essay

Questions to be addressed: Would a good God let bad things happen? Why does man choose to do evil? For many people, nothing drives them away from Religion like pushy, preachy people. I don’t feel that I am knowledgeable enough to argue many points when it comes to religion. I’m actually not a huge fan of organized religion myself. Like most things, it has its good and bad points, but overall, anything that brings people to God is great. However, you won’t find a better example of hypocrisy than the church. Throughout history, no cause has driven people to war like religion. On the other hand, if one does not agree with what people have done to the church, does that mean we have to turn away from its very foundation? When one analyzes the core of Religion, they discover that its most basic principles are, in fact, good. God IS good, right? Does God allow bad things to happen? Yes. But why? Because He has to in order to keep His promise of free will. God doesn’t make bad things happen, people do. God doesn’t snap his fingers and *poof*, somewhere in the world another person is murdered. That murderer chose to put himself in that situation. So does God let this happen? In the sense that He allowed the murderer to exercise free will – Yes, He did. Does this mean that we should blame God? No, I don’t think so. There is nothing I am more grateful for than my free will. There would not be much of a life without it. In Saint Augustine’s On Free Choice of the Will, the idea that God allows bad things to happen is presented in a conversation between himself and Evodius. On page 5 line 19 of the text, Augustine states â€Å"Yet it perplexes the mind how God should not be indirectly responsible for these sins, if they come from those very souls that God created and if, moreover, these souls are from God. † The entire concept of blaming God for bad things has always been hard for me to understand, but the book does clarify many points. I intend on presenting those points by defining several terms and applying them to the argument that Saint Augustine uses in order to obtain a sufficient answer to the question. In order to do this, we must assume that God does exist. People often say, â€Å"I know there’s a God, but I want to understand: Is this God good? And if he is good, then why do bad things happen? † By asking this question, one might really be asking â€Å"Does God even exist? † which is completely different. The question of whether or not God exists has nothing to do with people’s suffering, but instead, with creation, revelation, world history, etc. Therefore, for simplicity, we will not venture to answer that question and will assume that God does exist. The question we are addressing is, in essence, requiring us to â€Å"judge God. † In discussing this issue, I have chosen not to address the question of why particular things happen. Take a physicist, for example. He may be able to tell you why a leaf will fall in a certain place- it has to do with the aerodynamics of the leaf, the force of gravity, and the direction of the velocity; however, if you ask him where the leaf will fall, he cannot because it is impossible to quantify the different forces that a make a leaf fall in a particular place. Of course, he can propose several general principles, but calculating exactly where it will land is beyond the realm of his analysis. It’s the same idea here. We won’t be able to say why specific things are happening in a specific situation, but we will be able to speak about general principles that can lead us to understand the workings of a good God who lets bad things happen. The Bible tells us: â€Å"God created man in His image, in the image of God He created him† (Genesis 1:27). What does it mean that man was created in God’s image? It means that human beings are finite and corporal. So how are we created in God’s image? Obviously, the â€Å"image of God† is dealing with the non-physical part of us – the soul. We get our drive for morality and meaning from the soul which is in the â€Å"image of God. † Just as God has independent choice, so too does each human being have independent moral choice. The image of God means that we have the ability to choose. The ability to choose is what makes us special as a race. Life only becomes meaningful because of our ability to choose. Take love for example. The difference in being programmed to love and the choice to love, is exactly what makes love special. Similarly, if I don’t have the choice to do good, but am programmed to do good, then there’s nothing meaningful about it. On the same accord, if I have the ability to do good or evil, then good becomes significant. For a choice to be truly genuine, there must also be consequences. If every time I get in trouble, mom comes to bail me out, that’s not really a choice. Choice means consequences. Our history-personal or global- is based on decisions made by human beings including the consequences that come from that. Now we understand that â€Å"image of God† means that God created beings who have the ability to make decisions, and those decisions will create consequences that will make this being a co-partner in the development of the world. This has many ramifications as far as why God allows bad things to happen. For free choice to operate, it’s obvious that evil has to have the possibility of existing. If every time someone chooses to do evil, God is going to interfere, then there’s no moral choice. If every time the gun is pointed, the turret points backwards, after a few times you get the message. It simply becomes pragmatic not to do evil. If the lives of the righteous were obviously perfect, that too would destroy the possibility of choice. Pragmatically, we’d figure it pays more to be righteous because look at all the good things that come my way! That’s not choice. That’s not becoming God-like. A world where a human being can create himself into a Moses, also carries the possibility of a person creating himself into a Hitler. We have to understand and appreciate that in the Holocaust, it was not God who built the crematoriums, it was the Nazis. It is not God who was massacring Muslims in Bosnia, it was the Serbs. Augustine’s approach to the â€Å"free choice of the will† assumes that â€Å"there can be no denying that we have a will. † Instead, Augustine defines â€Å"good will† as â€Å"a will by which we seek to live a good and upright life and to attain unto perfect wisdom† which, of course, assumes that it is free. Those who choose evil are ruled by their passion and desire for things of this world. This is futile because they only have, as Augustine says, â€Å"the love of things which each one can lose against his will. † One who chooses to do good ultimately gains everything because there is no fear of losing â€Å"things† due to lack of attachment to them. Those who become perfect could lose every material thing and still gain all precisely because they are trying to attain the perfect, which is wisdom. Wisdom cannot be lost as long as someone has good will. This leads us to the question: Why would we choose evil? It is my belief that humans always choose to do good, it’s just a matter of whether one chooses a lesser â€Å"good. † This occurs when one chooses to allow passions and desires to rule the soul, which tend toward things of this world. While Augustine’s friend Evodius can claim â€Å"there is a great difference between† passion-desire and fear, fear is a part of passion. We fear because we hate something, which may or may not equate itself to reason. Therefore someone of good will necessarily seeks to order oneself perfectly with God’s lines of the Gloria: â€Å"Glory to God in the highest, and peace to men of good will† (Luke 2:14). Augustine begins to answer the question why man chooses to do evil by declaring what makes humans distinct from animals. It is the fact that humans have the capability of reasoning and animals do not. He points out that some things that men possess uniquely as opposed to animals, such as the â€Å"power to jest and laugh† and â€Å"the love of praise and glory,† are â€Å"of a lower order. † As a result, when reason rules the soul, â€Å"the more perfect [reason] is made subject to the less perfect [desire and passion]. † In our day, most people do not even realize they should work toward having reason rule their lives. It has been â€Å"in style† for more than one hundred years that humans must have their desires and passions rule their lives. Those who have reason rule their lives are thought to be â€Å"rigid† because reason assumes that someone can find truth, which many now claim is impossible. One can view this outlook first hand. It is manifested by people who think they can determine their own morality and even reality. On the flipside, people tend to think they’re at the mercy of the bad things that happens to them to explain away their need to eliminate their faults. If we have a free will, then we also have the duty to make decisions based on a well-formed conscience and what is good and evil. What determines whether a particular action is good does not depend on one’s own judgment on whether â€Å"it feels good† or â€Å"does not hurt anyone. † Instead, we have a duty to determine good and evil based on truth and to have it rule one’s life, with passion and desire subject to it. When people are ruled by feelings, it necessarily diminishes the dignity of a person. When a soul is not well-ordered, the ability to use one’s will freely is diminished, but not completely destroyed. Rather, we have the duty to work to order our souls correctly, no matter how low we’ve gotten. An interesting fact about Augustine exemplifies man’s imperfections and low points. According to an online encyclopedia reference site (Wikipedia. com), Augustine had a mistress for several years before turning from evil to do good. Not much more was written about this incident, but it did mention that Augustine attributed his rise from a life of sin to a great doctor of the Church by means of God’s grace. He believed that through God’s grace, we can choose to become men of good will and live good lives. For me, a â€Å"good life† means that I make a comfortable living as a doctor, I and my family enjoy good health, and then I die peacefully at age 80. That’s a good life. Anything else is â€Å"bad. † In a limited sense, that’s true. But if we have a soul and there is such a thing as eternity, then that changes the picture entirely. Eighty years in the face of eternity is not such a big deal. Relating this to a major historical event, after being responsible for the torture and deaths of millions of people, could Hitler could really â€Å"end it all† by just swallowing some poison? No. Ultimate justice is found in another dimension. I will stop myself there since the concept of â€Å"another dimension† is a whole other argument. That it is very difficult for us to â€Å"judge† God because we are stuck in time and space. And because our view is so limited, when â€Å"bad† things happen, there are so many possibilities of why it’s happening that we are incapable of considering them all: Is this a challenge in life that was given to me so I could become an example to inspire others? Or is this to get me to fix a wrong I’ve done? Or is this due to historical/national forces that are affecting me as an individual? Or is what’s happening to me now through a choice that I’ve made? Or that I’m on my own because I’ve distanced myself? † The fact that there are so many possibilities makes it easier to come to terms with the question and to be more comfortable realizing that if I had God’s infinite view I would understand. Until that day comes, these theories of mine will have to do. On Free Choice of the Will by Saint Augustine An essay providing insight as to why a good God lets bad things happen as well as why men choose to do evil. Roya Mohebpour.

My Favorite Hobby

Wind blowing into my face, my eyes where after few seconds the tears come out and I am speeding and crying but this are not the tears of sadness but the tears of joy. Stop. Here I am in the most beautiful place in the world, surrounded by mountains covered in snow. Sun is shining, even though it’s minus ten but I haven’t even noticed because I’m too happy. I have the feeling of being on top of the world and that there’s nothing that can stop me. It’s great to have a passion that makes you feel like this. I’m lucky to have one.During the time that most of people like to spend drinking warm tea and reading a novel, I’m cruising through snow, both my legs strapped to a wide plank of wood and fiberglass, practicing sport known as snowboarding. Writing this essay helped me to realize that I haven’t chosen this hobby by a coincidence. Both of the characteristics of this sport changed the world history. Events like the French revolutio n of 1789 or the uprising in the Jewish ghetto in Warsaw in 1943, would not have happened if people hadn’t had courage and belief in freedom.Courage. Many people who know me well say, that I have courage. I come from a family of entrepreneurs. I was raised in this spirit by my entrepreneurial parents who had big respect for hard work. I learned that hard work will always be rewarded. I helped in my family’s business, since I turned 14 and I learned the pros and cons of having your own business. Even though the disadvantages seemed big to me at that time, as an only child I knew that I would run the business one day. By the time I turned 18, I was fully at peace with this idea.It’s hard to imagine how big my shock was when one year later my father got a brain cancer and passed away and a year later our self-built family company. The shock was big and lasted long but I knew one thing – I had no plan and I needed one. I put myself together and made a new pla n – studying, developing myself, investing in what my father used to say â€Å"nobody will ever be able to take away from you† which is knowledge. Where I am today, doing what I do is the result of that experience and my patience, persistence and hard work. Freedom.During an exchange programme for students, we played a game in which each of us had to choose 3 words representing our values. Surprisingly I had no problem to choose the number one â€Å"freedom†. I found that amazing to discover, that freedom was more important to me than things like â€Å"family†, which was the number two, â€Å"love†, not to mention – â€Å"career† or â€Å"development†. Even today I know that only through â€Å"freedom† can I achieve all the other values that are important to me. It organizes my priorities and my moral system. It’s the freedom of my own choices and the freedom of always standing for what I believe in.Moreover, it i s also about honesty and respect to other people, which are my personal code of conduct. And when necessary it is the freedom to give up some of our freedom out of love and respect for others. Courage and all the notions of freedom described above are helping me to be successful in business. I am always a promoter of honesty and transparency in the workplace, as well a big supporter of the sustainable development agenda. What makes it different but not less exiting than my sport activities, is the fact that I don’t have to do it in minus ten degrees Celsius†¦

Income Tax and Corporation Tax Essay Example | Topics and Well Written Essays - 2250 words

Income Tax and Corporation Tax - Essay Example Under the finance act 2010/2011, there are three types of rate bands, basic rate, higher rate and additional rate. Every type of income has its own tax rate. These are illustrated in the table below: Basic High Additional Rate Band (?1-?37,400) (?37,401-?150,000) (?150,001 and over) Non-Saving Income 20% 40% 50% Saving Income 20% 40% 50% Dividends Income 10% 32.5% 42.5% If a savings income fall into the basic rate band, then the rate, till the amount of ?2,240 is 10%. Above that the rate of 20% is implied. Any income over and above the individual’s allowance is taxable. There are different kinds of allowances for example personal allowance, old age allowance, married couple allowance, maintenance payment relief, or blind person’s allowance. Personal allowance depends upon the age and income limits, Allowances for the year 2010/2011 are shown below: Age ? Personal Allowance Standard 6,475 Personal Allowance 65 to 74 9,490 Personal Allowance 75 and above 9,640 Income Limi t for age-related Allowances 22,900 Income Limit for standard personal allowance 100,000 The blind person’s allowance is 1,890 pounds for the year 2010/2011, there are no age or income limits, and this allowance is in addition to the personal allowance of the entitled individual. Other allowances like married couple’s allowance or maintenance payment relief are entitled to a couple where both the partners are born before 6 April 1935, or either of the partners or formal partners is born before 6 April 1935, respectively. Married couple’s allowance is ?6,965 for the year 2010/11. Tax Period: The relevant tax period for the year 2010/2011 is from 6 April 2010 to 5 April 2011. All the taxes are computed for this period. Corporation Tax: Scope:... The paper tells that income tax is charged on the income of all UK residents. Income tax is basically charged to all the individuals. That will include employed, self-employed or un-employed individuals. For employed individuals, the basic source of income will be their salaries along with other sorts where as the self employed individuals will be charged on their trading income. Un-employed individuals may have their income coming from savings or investments. There is no maximum age limit for any individual to be exempt from income tax. Corporation tax is payable by limited companies or some other unincorporated businesses, which are UK resident. Such UK resident companies pay tax on their comprehensive income. A company is called a UK resident; if it’s incorporated in UK or even if it isn’t incorporated in UK then it is centrally managed and controlled in UK. In determining where the company’s central administration is positioned, the HM Revenue and Customs wil l focus on the highest level of the company. Especially where the board is located and where all the meetings of the board are carried out. If a company is a non-resident then it is not liable for corporation tax. But if it carries out its trade through a permanent institution like a branch or agency which is a UK resident, then in that case the profits from that institution are liable for tax. From the paper we will see that though rates related to income tax are constantly being increased and the allowances being decreased, no such progressive changes are seen in the corporation tax strategy.

America Online and Time Warner Case Study Example | Topics and Well Written Essays - 500 words

America Online and Time Warner - Case Study Example Since then, this merger has been regarded as one of the biggest corporate mismanagement examples in the realm of managing telecommunication network and media companies. The case study unveils a number of issues that are big threats to the telecom sector and media companies globally. In 2010, media analyst Tim Arango of the New York Times attempted to throw some light on the merger between AOL and Time Warner that took place a decade ago from then. In analyzing the reason behind the merger, Arango remarks that at the wake of the 21st century, experts in telecomm and media industries were expected Internet was going to become the main medium of content delivery and entertainment all over the world, replacing and/or amalgamating the various traditional media and content delivery systems of that time. However, this was the main issue with the decision makers at both AOL and Time Warner. AOL’s business outreach and technological equipment and expertise were not as robust as to handle the huge industrial momentum of Time Warner. Probably, AOL managers were thinking well ahead of their time. A scrutiny of scientific literature suggests that Internet technologies were not as advanced at that time as to facilitate all the services needed for international distrib ution of various types of contents. Even in the middle of the first decade of the new millennium, scientists were striving to establish a sufficiently powerful architecture for the purpose of â€Å"pervasive content delivery† (Su and Chi, 82). Clearly, Internet technologies had limited strength during the merger between AOL and Time Warner. The case study thus helps us to understand that we need a really powerful and futuristic computing system to ensure Internet based content delivery of all kinds of information ranging from news to cinemas, weather forecasting to cartoons, and so on. As shown by the case study discussed, technological barriers remain a prominent issue

Toulmin argument paper Research Example | Topics and Well Written Essays - 1000 words

Toulmin argument - Research Paper Example This is a city that puts a premium to attracting businesses by giving generous tax incentives. It is fast growing as a city and with it various concerns like increased crime rates, environmental and health concerns, property taxes, public transportation and police protection have some citizens worried and they feel these issues need increased government attention. The city gives a great deal of emphasis and focus on environmental issues. It has put up a government Web site where citizens can e-mail their various concerns. In particular, there is a section in the Web site where important health issues are given importance by the Health and Human Services Department (HHS). One particular Web page under the HHS page is the Environmental Health Services page which is concerned with certain public health issues like proper sanitation, food safety, waste disposal and management of disease-carrying pests and insects such as bed bugs, cockroaches and mosquitoes (http://charmeck.org 1). This paper is concerned with the last time item mentioned, which is disease-carrying mosquitoes which is not given enough attention by the local government. Mosquitoes are capable of transmitting many diseases like malaria, dengue, yellow fever, filariasis and West Nile virus (WNV). Among disease-carrying insects, cockroaches, flies and mosquitoes are the worst with mosquitoes capable of breeding quickly and spreading their diseases through vectors or those carriers of the virus. One important vector for most diseases carried by mosquitoes are birds. In previous instances, North Carolina always investigated the presence of dead birds and tried to determine their cause of death by conducting autopsies on the dead birds. However, since a West Nile virus has long been confirmed in North Carolina, health authorities stopped doing those autopsies on dead wild birds and no longer overly concerned. It is this dangerous sense of complacency that might lead to unnecessary suffering and death

Visit museum and discuss this photo with your own words Essay

Visit museum and discuss this photo with your own words - Essay Example This part of the wall has elaborate edges. Moving to the bottom of the picture, the room is well-carpeted. At the left side is a bookshelf filled with books. At the further back, there is an ornately-designed cabinet with a flower vase. A door is beside it with a cherubim carving on top, like an angel guarding its inhabitants. A chair could be near it with fur hanging on it, which seems to have a sinister face. The wall beside it has mirror or a painting. There is another cabinet with a flower vase. The centerpiece where the light falls is the drawing board. This must be a table for an architect, painter, or engineer. An unlit candle is beside the table. A small book is on it, on top of ruler or a long thin object, with a tiny man on top of it. He goes to the direction of the door. On the top of the room is an open roof with slightly dark clouds. It is a cloudy day, but the sun peeks from the left. It is the sun that provides light for the shadows inside the room. I chose this work because it shows openness that is critical to mindfulness. The sky and the sun are symbols of openness. Their entrance into the room removes the boundaries of the world. The clouds are a bit dark because to learn is a difficult task. The man coming out of the books means that, through knowledge, he is reborn. He has become more mindful of his identity and mission in life. The sun shines on him because his path is clearer. He goes to the door, where his destiny waits for him. The man is

The strategic position of Thorntons PLC in 2003 Essay

The strategic position of Thorntons PLC in 2003 - Essay Example The internal performance of Thorntons Plc is multi-faceted, consisting of various aspects which are inherent in its operations. An internal analysis considers the company's culture, image, organizational culture, key staff, access to natural resources, position on the experience curve, operational efficiency, operational capacity, brand awareness, market share, financial resources, exclusive contracts, and patents and trade secrets. Simplifying all these generates three main considerations-resources, capabilities, and core competencies. Thus, for decision makers inside a firm, the main challenge is the identification, development, deployment, and protection of resources, capabilities, and core competencies (What Tools Are Useful in Assessing the Internal Environment n.d.). In business terms, resources refers to the inputs that goes into the firms production process such as capital equipment, skill, individual employees, patents, finance and talented managers (Dess, Taylor & Lumpkin 2005). Resource can be classified as tangible, intangible, or organization capabilities. The resource-based view of a firm emphasizes that a "firm can earn sustainable supra-normal returns if and only if they have superior resources and those resources are protected by some form of isolating mechanisms preventing their diffusion in the whole industry" (Resource-Based View of a Firm 2007). Furthermore, these supra-normal returns are possible only if resources are valuable, rare, imperfectly imitable, and non-substitutable (Dess, Lumpkin, and Taylor 2005). Tangible resources are relatively easy to identify. This category typically includes the physical and financial assets used to create value for the customer. In order to fully identify the tangible resources of Thorntons Plc, this report will divide them into financial, physical, technological, and organizational resources. 1. Physical Maintaining its reputation as one of the classic makers of indulgent confectionery, Thorntons Plc continues to use a larger proportion of manual processes in its production system. In the industry where almost all the manufacturing processes are mechanized, Thorntons take charge of the quality of its products by being fully different from its competitors. In terms of physical resource, the company becomes remarkable because of its minimal automated processes (Jennings 2003). Thorntons business is also highly dependent on its distribution channels specially its own stores. It should be noted that the company is recognized because of the number of its outlets in the whole United Kingdom (Jennings 2003). These stores have become instrumental in consistency of the services received by each customer. 2. Financial During 2003, Thorntons Plc reports total assets of 114.108 million, 27% of which is in liquid assets. Cash comprises a meager 14% of the current assets or 4.5% of the total resources. In terms of capital structure, debt finances 62.30% of its total resources while equity financing accounts for the remaining 37.7% (Thorntons Plc Annual Report 2003). It should

To what extent does the bhpbilliton's sustainability report comply Essay

To what extent does the bhpbilliton's sustainability report comply with the GRI's Sustainability Reporting Guidelines G3. Sust - Essay Example Discussion would also be done regarding the decision to provide assurance to the sustainability reports or not and if yes, then to which level. However, it is not viable to consider every industry and their companies, so in this report, BHP Billiton would be considered for the analysis (Adams, 2006; Hooghiemstra, 2000). Sustainability Reporting Sustainability reporting involves not only generating report, but also includes the method through which commitment of the organisation towards sustainability development is presented for both internal and external stakeholders. Organisation should ensure a robust system in order to manage the organisation sustainably, including traceability, transparency and compliance (Gray, Owen and Maunders, 1987; Hopwood, Unerman and Fries, 2012). Corporate sustainability reporting is the term being used since long in the business environment. It was first initiated with respect to environmental concerns, which later also integrated financial and non-fina ncial reporting, corporate governance and ethics in business. The Global Reporting Initiative (GRI) is the key guidelines that are followed by organisations around the world to design and develop their sustainability reports (Heller and Darling, 2012). ... ng Sustainability accounting is also called social accounting because it aims at reporting the economic, social and environmental performance of organisations. The Sustainability Accounting Standard Board (SASB) is the non-profit making body, which designs and puts forward the standards for sustainable reporting in accounting. However, the SASB functions under the guidelines of Securities and Exchange Commission (SEC) (Ghillyer, 2011; Gossy, 2008). The standards design by SASB benefits more than 13000 corporations, which represent more than $16 trillion funds and all these standards are based on three pillars; social, environmental and governance (Gallagher and Andrew, 2007; Garriga and Mele, 2004). The elements, considered under the segment of environment, in sustainable accounting are recycling, emission, greenhouse gas and water, packaging. On the economic front, they are stakeholders’ value, financial performance, transparency, accountability and corporate governance. Soci al aspects such as, public policy, safety, human rights, fair trade, community investment and anticorruption, are also considered while developing sustainable accounting reports (Aras and David, 2010). Sustainability Reporting Guidelines G3 by GRI According to the GRI guidelines, the objective of sustainable development is to congregate requirements of the present without negotiating the capability of future generations to convene their own wants. The purpose of sustainability reporting is to measure and disclose the competent practices of the company to their internal and external stakeholders. The GRI framework was developed to assist organisations around the world in preparing their sustainability reports (Galea, 2004; Kolk, 2004; Dwyer and Owen, 2005). The sustainability guidelines include

The Manifestation of Race, Ethnicity, and Faith in British Education Literature review

The Manifestation of Race, Ethnicity, and Faith in British Education - Literature review Example Since the 1980s, the leading cultural fundamentalist group of the New Right in the United Kingdom has not just disparaged and ridiculed such policies, but has aimed to enforce its own chauvinistic and racist perspective of British national identity on England’s and Wales’s National Curriculum (Pathak 2008). Antiracist educators in the UK have not taken seriously the concept of ‘new racism’ introduced by Barker (1981 as cited in Cashmore & Troyna 1990). As far as the concept is considered at all in antiracist research, it is merely cited and its value to education seems never to have been taken into account. This literature review will provide a brief review of literature on identity politics and multiculturalism, specifically concerning three of the most debated issues in the UK: (1) race, (2) ethnicity, and (3) faith in education. The author chooses the three abovementioned issues because of their persistent presence in the British society. These three issues are the major factors that put several social groups in a disadvantaged position, specifically in education and long-term employment (May & Sleeter 2010). As stated by Korn and Burzstyn (2002), access to wealth, influence, full involvement in economic, social and political life, or what may be referred to as complete citizenship, greatly relies on education. This is particularly factual for ethnic minority groups. Without a practical educational attainment they confront the double threat of exclusion and inadequate qualifications. Those who drop out from school and then fail to acquire additional training or education, are prone to become part of a marginalised group with potentially detrimental repercussions for race relations where in traditional perceptions about Asians and African-Americans (Mitchell & Salsbury 1996) are established. The first part of the literature review will discuss the distinctions between race, ethnicity, and faith. It will refer to the different definitions given by several authors. The second section will discuss the issue of race, ethnicity, and faith in the British education system. The issue of multiculturalism in education will take precedence in this literature review. Distinctions between Race, Ethnicity and Faith In this literature review, a brief description of the notion of race, ethnicity, and faith, as well as the distinctions among them, will be discussed. The concept of ‘ethnicity’ is quite new. Before the 1970s there was hardly any discussion of it in anthropology works and literature, even a mention of its definition (Faas 2010). Prior to the Second Wo rld War, the word ‘tribe’ was the chosen word for ‘primitive’ societies and the word ‘race’ for contemporary societies (May 1999). Because of the strong connection between the ideology of the Nazis and the concept of ‘race’, the word ‘ethnicity’ eventually succeeded ‘race’ in Europe and the United States (Spalek 2007). The discourse on ethnicity is confounded by a diversity of associated concepts applied to distinguish comparable trends, like nation, race, minority, and tribe. Several researchers and scholars apply these concepts synonymously while others use them as distinct terms (Spalek 2007). Nevertheless, the connection between race and ethnicity is complicated. Even though there is much continuity they are different notions. For instance, Pierre van den Berghe defines the term ‘race’ as a specific classification of ethnicity that makes use of genetic attributes as an indicator of ethnici ty (Cashmore & Jennings 2002, 122). Although the connection between the two notions is more complicated than the above definition, his description is quite accurate (p. 122). British scholars normally exclusively attribute ethnicity to

Monetary Policy Coursework Example | Topics and Well Written Essays - 8000 words

Monetary Policy - Coursework Example This paper examines the relationship that exists between the monetary policies and the stock market bubbles and concludes that the monetary policies can be varied to have very little control on the stock market movements, as monetary policies like change in the interest rates would be slow in acting on the bubble price movements. However such change in the policy may restrict the influence of the financial instability on the economy that immediately follows the bubble. This paper concludes that the central banks should adopt standard monetary policy or bubble policy depending on the circumstances and the extent of the macroeconomic consequences of the stock bubble price movements. In the process of the study of the impact of the monetary policies on the stock market bubbles the paper also details some of the historic bubbles and crashes. Expanded spells of rapidly appreciating equity, housing, and other assets prices in any country since the twentieth century have brought the impact of monetary policies on the asset market prices to the fore and to the attention of the economists to analyze the phenomenon. The analysis includes the response of the asset market booms as a result of the changed monetary policies. It is the argument from some of the economists that the nature of the financial markets tends to be volatile inherently and that the market prices often go tangentially to fundamentals. Hence they argue that it is possible for the policymakers can improve the welfare activities of the economy by adopting measures to deflate the asset price booms, especially under circumstances where the sudden declines in the asset market prices will have the effect of depressing the economic activity to the advantage of the country. There are other economists who believe that the financial markets are efficient in processing the information provided to them. These economists argue that it is not possible for the policymakers to determine the point of time when the assets are mispriced and hence they cannot adopt policies which will have the effect of improving the welfare of the nation by reacting to the asset price movements. However the stock market boom in the United States in the late 1990s has been found to arise during a

A Tale of Two Cities by Charles Dickens Essay Example for Free

A Tale of Two Cities by Charles Dickens Essay Loyalty and duty is one of the main themes in A Tale of Two Cities. Dickens examines this theme on many different levels, looking at both the loyalty and duty involved in the characters personal relationships and their loyalty to certain causes or beliefs. Many of the characters in the book make great sacrifices due to loyalty on a national level or personal level. Lucie Manette shows great dedication and loyalty to her father, Dr. Manette. Though she once believed she was an orphan, when Lucie meets with her father she is unable to part with him. She looks after him and as the golden thread is able to bring him back to health and lovingly take care of him thereafter. Miss Pross, her nursemaid tells Mr. Lorry how Lucie had to persevere and showed tremendous devotion when she was nursing her father back to health He gets up in the dead of night She hurries to him and they go on together until her love and company have brought him to himself. (p94) She even says she is willing to avert her marriage plans despite her love for Darnay because she loves her father and does not want to leave him If my marriage were so arranged as that it would part us I should be more unhappy and self-reproachful now than I can tell you. (p180) Lucie sees it her duty as a daughter to look after Dr. Manette and throughout the book she demonstrates her loyalty to him She had been true to her duties. She was truest to them in the season of trial, as all the quietly loyal and good always will be. (p264) Lucie also shows loyalty when her husband, Darnay is imprisoned. Throughout his imprisonment, Lucie goes to stand outside the prison for two hours each day hoping that her husband will be able to see her. In all weathers she waited she never missed a single day. She is also loyal to Carton who professes his love for her. She makes sure that he is welcome in her home and that he is treated with respect despite his reputation and bad habits. She tells Darnay to Remember how strong we are in our happiness, and how weak he is in his misery!. At the end of the book Carton sacrifices his life in order to save Darnay. Lucie honours him even after his death by naming her son after him. Darnay himself shows loyalty to his old steward, Gabelle. Gabelle is imprisoned in France due to his relationship with the Evrà ¯Ã‚ ¿Ã‚ ½monde family and he so he writes to Darnay appealing to his Justice, honour, and good name. (p233) Darnays sense of duty and responsibility forbids him to turn his back on Gabelle or on his country. He is unaware of how dangerous it will be for him in Paris and idealistically, he even believes that he may be able to calm some of the violence. Eventually, like a ship may be drawn to the Loadstone Rock, he decides to go to Paris and fulfil what he believes is his duty. Miss Pross is brusque, tough, and fiercely loyal to Lucie, her Ladybird. Mr Lorry admires her for being so humble and for adoring Lucie so much that she would do anything for her. He talks of Miss Pross being One of those unselfish creatures who will, for pure love and admiration, bind themselves willing slaves, (p92) At the beginning of the book, Miss Pross says that she will never go abroad If it was ever intended that I should go across salt water, do you suppose Providence would have cast my lot in an island. (p30). However, when Darnay goes secretly to France and Lucie hears of his imprisonment, Miss Pross accompanies her to France. She overcomes her fear of travelling out of loyalty to Lucie. At the end of the book, Miss Pross shows extreme courage and devotion to Lucie when she faces Madame Defarge to stop her discovering that Lucie is fleeing France. I dont care an English Twopence for myself. I know that the longer I keep you here, the greater hope there is for my Ladybird. (p352) Miss Pross then starts a violent fight with Madame Defarge though she had Never struck a blow in her life and when a pistol accidentally is shot and kills Madame Defarge, Miss Pross is deafened for life. The fight between these two women shows how Miss Pross was stronger in her loyalty to Lucie than Madame Defarge was in her hatred- love, always so much stronger than hate. (p353) Miss Pross also remains loyal to her brother even though he had previously stolen all of her money and left her. She says that Solomon was the one man worthy of Ladybird (p92) and that he Had the makings in him of one of the best and greatest men in his native country. (p284) The revolutionaries in France prove that a new, fairer French republic can only be achieved with heavy and terrible costs. Personal loves and loyalties must be sacrificed for the good of the nation. When Darnay is arrested for the second time, the guard who seizes him reminds Manette that state interests should be held above personal loyalties. If the Republic demands sacrifices from you, without doubt you as a good patriot will be glad to make them. The Republic goes before all. (p281) Defarge shows courage and loyalty to the revolution when he tries to give a petition to the King At the hazard of his life, darted out before the horses with the petition in his hand. (p163) However, Madame Defarge thinks her husband weak when he pities Doctor Manette and does not want Darnay or Lucie to be killed. If it depended on thee- which happily it does not- thou wouldst rescue this man even now. (p326) Dr. Manette is loyal to his dutiful daughter Lucie. Even when Charles tells him that he is part of the French aristocratic family who caused his long imprisonment in the Bastille, he allows Charles to marry her. Though the shock of this discovery causes a relapse of his old mental state, when he recovers he accepts the marriage of Lucie and Charles for his daughters happiness. Mr. Lorry is extremely loyal to Tellsons Bank. He agrees to go to the bank in Paris even in the midst of the revolution to make sure it is safe. If I were not prepared to submit myself to a few inconveniences for the sake of Tellsons, after all these years, who ought to be? (p226) He describes himself as a man of business and even when he is almost eighty years old, he risks his safety and goes to Paris just to ensure the safety of the bank. Jerry Cruncher tells his wife what he thinks is her duty. A mothers first duty is to blow her boy out. Mr. Cruncher does not like his wife praying because he thinks it affects his work as a grave-robber. You have no more natural sense of duty than the bed of this here Themes river has of a pile, (p156) However, he shows loyalty to Mr. Lorry and to the Manettes when he tells Carton that Roger Cly was not dead as he had not been in his grave when he went to dig it up. Cruncher puts his position at risk when he gives away his secret career. The French aristocracy show a lack of duty and loyalty. They treat the people of France extremely badly. When the Marquis St. Evrà ¯Ã‚ ¿Ã‚ ½mondes coach runs over a child he thinks that tossing a coin to the father is enough compensation. Monseneigneur shows no loyalty to his family. When he wanted some money he married his sister to a rich man, treating her like an object rather than a sister. Dr. Manette sees how cruel the Evremendes were when he has to look after the dying lady whom they had taken from her husband on her wedding night. The sacrifice of Sydney Carton is an example of tremendous loyalty to Lucie and her family. Carton loves Lucie so much that he willingly gives up his life to save her husband, Charles Darnay. For you, and for any dear to you, I would do anything. Carton single-handedly thinks up a plan and arranges that he replaces Darnay at the guillotine. Cartons love for Lucie eventually makes him a better person, knowing that he will save Darnay radically changes him, For the first time in many years, he had no strong drink. (p324) Even Mr. Lorry notices the change in him His manner was so fervent and inspiring, (p330). For the first time Carton feels like his life may have a purpose and could be useful Of little worth as life is when we misuse it, (p322)Cartons loyalty to Lucie is extremely important for him, in choosing to die for her, Carton not only enables their happiness but also ensures his spiritual rebirth. It is a far, far better thing that I do than I have ever done, it is a far, far b etter rest that I go to than I have ever known. (p361) We can see through all these characters how important loyalty and duty is. For some people like Carton and Miss Pross, it provides a purpose in life. For others such as Dr. Manette, Lucie and Darnay, duty is what they feel is the right thing to do. Overall, Dickens shows us that duty and loyalty can make you a better person and that sometimes sacrifice is necessary to achieve happiness or to produce something good.

High school Essay Example for Free

High school Essay CHAPTER ONE 1. 0 INTRODUCTION In an effort to improve universal access to education, the ministry of education made a decision to introduce the re-entry policy. The policy is meant to accord girls who drop out of school owing to early pregnancy an opportunity to be re-admitted six months to one after delivery. This initiative has since scored a number of successes as some girls have gone back to school and successfully completed their secondary education , though some, order the age initially would have done so, Fifth National Development Plan(2006-2010). Before October 13 1997, it was considered an expellable offence for girls who fell pregnant while at school. But the re-introduction of the re-entry policy on that date was a measure and recognition of the importance of addressing gender inequalities in national development and the need to narrow down the gender gap in the education, Ministry of Education (1996). Child pregnancy has been persistent factors in household and hence, the re-entry policy has enabled government and families to recoup the investment made in educating such girls and that the nation has been accorded the much needed educated human resource for national development. 1. 2 STATEMENT OF THE PROBLEM There has been a marked increase in the Forum for women educationist of Zambia has endeavored to play in the support and sensitization of the re-entry policy in enhancing girl child education in Zambia. However, despite this increase not all have been able to go back to schools. This is a serious omission particularly when a good number of girls can utilize the given opportunity and when concerted effort has been made to enhance girl child education. In addition, all efforts and resources pumped in will go to waste. 1. 3 THE PURPOSE OF STUDY The purpose of this study is to find out the role FAWEZA is playing in promoting the reentry policy in enhancing girl child education and to find out the response of the policy by the girl child. 1. 4 OBJECTIVES OF THE STUDY †¢ †¢ †¢ †¢ †¢ †¢ To find out the role of FAWEZA in promoting the re-entry policy. To find out whether school managers do comply with the policy. To find out the response of the re-entry policy by pupils. To find out whether the re-entry policy is a success or failure. To find out whether teachers and parents support the policy. To find out measures in improving the re-entry policy. 1. 5 RESEARCH QUESTIONS †¢ †¢ †¢ †¢ †¢ †¢ What is the role of FAWEZA in supporting the re-entry policy? Do school managers comply with the policy? What is the response of the re-entry policy by pupils? Is the re-entry policy a success or failure? Do teachers and parents support the re-entry policy? What measures can improve the re-entry policy? 1. 6 SIGNIFICANCE OF THE STUDY The study’s findings and recommendations may assist the Forum for Educationist of Zambia FAWEZA and the Ministry of Education in promoting and supporting the re-entry policy in enhancing girl child education in Zambia. 1. 7 LIMITATIONS OF THE STUDY Because it was an introduction to research at degree, this research only covered a small part of Lusaka urban district. Secondly, money was a problem to access at the right time hence it delayed the process of collecting data. However, the researcher tried by all means to use the available resources, time to make sure that this is a success. @siamef Page 2 1. 8 DEFINITION OF TERMS ENHANCE; To improves or adds to strength. RE-ENTRY; An act or instance of somebody going back to enter. POLICY; A set of principles on which they are based @siamef Page 3 CHAPTER 2 2. 0 LITERATURE REVIEW 2. 1 Policy Formulation In contrast to the policy of exclusion that preceded it, the re-entry policy advocates that girls who drop out of school due to pregnancy should be readmitted after giving birth. The aim of this policy is to find more innovative measures to help prevent the exclusion of young mothers from education. In the event of a girl being forced out of school due to pregnancy, the Ministry of Education in Zambia has provided policy guidelines to assist schools and other stakeholders such as FAWEZA etc. †When the women’s movement in Zambia grew in strength, one of the issues they decided to fight for was injustice for girls who were thrown out of school after getting pregnant. In June 1995, the Zambia Association for University Women organized a conference on the situation of the girl-child in Zambia. The conference, which was held in preparation for the Fourth World Conference on Women, proposed to government that girls who became pregnant should be re-admitted into school once care for the child was assured† (FAWEZA, 2008, Ministry of Education, 2009). The policy is grounded in the outcomes of the Beijing Conference of 1995, a conference at which the Women’s Movement drew up its own priorities and action plan. The conference demanded that girls who dropped out of school because of pregnancy should be readmitted. In addition to this, Zambia is a signatory to most of the international instruments that promote the rights of children and women. The country recognizes education of all children as a basic human right as enshrined in Article 26 of the United Nations Universal Declaration of Human Rights. It further recognizes education as a right that is also guaranteed by the policy of Education for All (EFA), the United Nations Convention on the Elimination of Discrimination Against Women (CEDAW), the United Nations Platform for Action, and the Millennium Development Goals. In addition to the international instruments, major national policy developments within the education sector were initiated, culminating in the development of the third Ministry of Education (Moe) policy on education in the document â€Å"Educating Our Future† (1996). In 2000, the government adopted a National Gender Policy. The policy states that it will facilitate the readmission of girls who become pregnant back into school as a way of readdressing imbalances and inadequacies in the provision of education. The 2001 FAWEZA @siamef Page 4 workshop made a number of recommendations to improve the implementation of the re-entry policy. The recommendations were sent to the Ministry of Education for approval. Though there was no official acceptance, some of the recommendations were adopted, and that has made the policy work well, (FAWEZA, 2010) 2. 2 Response of the Policy In Zambia, some girls, especially in rural and peri-urban areas, fail to continue with their education as a result of teenage pregnancies. Although the Ministry of Education has a policy of allowing teenage mothers to go back to school after delivery, few are doing so. They find it difficult to leave their babies and stay in school for eight hours and are often ridiculed by others. The men responsible for their pregnancies often abandon them without any form of support. Unlike boys, a girl-child seems to have so much on her shoulders. This is due to cultural inequalities that continue to define societys way of life. Maybe this should be the focus of most of the gender discussion going on. Some girls in rural areas who fall pregnant are normally kept at home to help with domestic chores, or care for terminally ill parents. Others are forced into early marriages and thus denied the opportunity to further their education. Government, through the programme, has been seeking to bring teenage mothers back to school. Educating a girl-child has been a high priority for the Zambian Government, (Zambia Online). In realizing the re-entry policy, FAWEZA (2009) reports that† Interviews with girls also revealed a high level of appreciation for the policy among schoolgirl mothers who had reentered after giving birth. They reported that they were grateful that the policy had given them a second chanceâ€Å" Achievements highlighted by the head teachers and teachers were with regard to the increased number of girls who were readmitted after giving birth each year and the level of awareness of the policy by the parents who sent back their daughters after giving birth. These positive stories are set however against the background of the high number of girls who fall pregnant before finishing school each year. 2. 3 Successes and Failures of the Re-entry Policy Despite the policy being put in place in Zambia, an increasing number of girls do not return to school after giving birth. Social economic and cultural factors have been commonly cited as reasons for this failure. The annual statistics from the Zambia Ministry of Education @siamef Statistical Bulletin shows increased number of pregnancies. In addition, data from the Zambia Page 5 Demographic Health Survey (CSO, 2007) reveals that each year approximately 30% of the girls who drop out from school, do so because of pregnancy. The main reason stated for dropouts is the lack of financial support. The survey reveals that generally girls from disproportionately poor backgrounds drop out of school due to pregnancy compared to those from better off households. The survey shows a link between poverty and early adolescent pregnancy, which consequently leads them to be temporarily excluded from school. Zambia has seen a tremendous increase in access to education with pupil’s enrolments growing Over 9% since 2000. Further, the illiteracy rate in Zambia has been halved over the past three Decades from 90% to 45%. In addition, in the past two decades, Zambia has vigorously embarked on formulating interventions to eliminate gender based discrimination against girls and women as a strategy towards creating more equal societies, FAWEZA ANNUAL WORK PLAN (2012). Despite this achievement, many challenges remain in education delivery in Zambia. There is a huge gap in reaching the millennium development goals (MDG) and Education for All (EFA) goals by 2015. This particularly is a challenge given the country’s significant population growth and deep poverty. In addition, gender inequality is a long way from being realized. Despite the significant rise in female enrollment at primary school, fewer, female compared to male, enroll in high schools (particularly in rural areas) as many tend to drop out before completing secondary school. According to the FAWE ANNUAL WORK PLAN (2005-2009), â€Å"Despite the challenges in the re-entry policy, the government-civil society interaction and the consultative process in Zambia represent one of the best-practice cases in sub-Saharan Africa. The policy is appreciated by a broad spectrum of people. Internationally, Zambia has been cited as a best example for implementing the policy. Representatives from a number of countries in the region, including Malawi, Botswana and South Africa have come to Zambia to learn about policy implementation. † Interviews with the ministry of education DEBs, the national coordinator from a civil society organization (FAWEZA), head teachers, teachers and pupils indicated a high level of optimism for the ultimate success of the policy. Schools confirmed that the â€Å"re-entry policy is a good policy and indeed a historical watershed to the government of Zambia†. FAWEZA has provided 4,750 scholarships at basic, high school and tertiary levels in ratio of 7:3 girls and boys respectively. With the aim of improving the performance, retention and contribute to progression and pass rates of boys and girls on the scholarship @siamef Page 6. programme, FAWEZA has created and continued supporting 390 Study Groups at upper basic school level and high school levels. FAWEZA will also facilitate the showcasing of the repackaged SMT Tele quiz DVDs in 25 schools aimed at inspiring girls to take up SMT subjects. The activity is intended to help FAWEZA track the impacts of using the media to sensitize communities, girls and women that girls are capable of performing well in SMT subjects as the boys. 2. 4 Compliance of the Policy by School Managers. According to the Strategic Plan close out Report (2005-2009:20) â€Å"The creation of gender responsive school environments is cardinal in fostering access, retention and completion of girls in their education. In consideration of this, FAWEZA conducted training for 40 High School Managers in guidelines for gender responsive school environments and gender analysis and mainstreaming, while 58 female school managers took part in training in public image projection, which included role modeling, public speaking force field analysis and gender budgeting. Further, using the MOE/UNICEF Girl-Friendly school module, provincial executive members and CWA members were oriented for them to orient school managers; Out of 63 school managers invited to the gender mainstreaming training, 54 attended; Various PECs and DECs met the newly appointed PEOs and DEBS to solicit support. † Hence if such interventions are being carried out, various doors will be open to allow the success of the policy. @siamef Page 7 CHAPTER THREE 3. 0 Research Methodology The purpose of this chapter is to show how this study was conducted. It looks at the instruments used. The methodology gives in depth principles used to analyze and collect data in the research. This is a qualitative case study research that makes extensive use of primary and secondary data. 3. 1 Research Design The research design which was used in this study was the descriptive survey. This study was aimed at collecting information from respondents on the role of FAWEZA and the re-entry policy in enhancing girl child education in Zambia. The researcher used both primary and secondary data. Primary data was obtained through interviews with the FAWEZA representative, DEBs and administering questionnaires to Head teachers, teachers, Parents and Pupils while secondary was found from the internet, policy documents, statistical bulletins, books and magazines. 3. 2 Description of the sample. The proposed study targeted a sample of fifty (50) respondents. The sample included representatives of FAWEZA, DEBs, Ten (10) parents, five(5) teachers, five(5) guidance and counseling teachers, twenty(23) pupils and five(5)school managers. The sample was drawn from five schools namely Matero Girls High school, Kamwala High school, Olympia Park High school, Kabuionga Girls High school and Libala High school within Lusaka urban District. In this study, purposive sampling was used in which both male and female were used in data collection. 3. 3 Sampling Procedure The study was purposively sampled on the basis of public secondary schools that had girls. The sampling of the schools was also purposive; this was done with the help of head teachers who reported that their schools had student-mothers enrolled or pregnant girls that dropped out of school. Of the several schools in Lusaka urban District; 5 schools were chosen. However, due to the fact that schools closed, the pupils were drawn from those that used to go for studies during holidays. While the head teachers of the five schools confirmed having had schoolgirl pregnancy cases in their respective schools. @siamef Page 8 3. 4 Description of Research instruments In the process of data collection, in depth interviews and questionnaires were administered. The use of both instruments formed a complementary approach towards collecting data using qualitative type of research 3. 5 Data Collection In this study, in depth interviews were carried out to the representative of FAWEZA and the DEBs because detailed information was needed. Questionnaires were administered to school managers, parents, teachers and pupils 3. 6 Data Analysis Data analysis commenced after the process of data collection exercise. This included systematic arrangement of data from the field. This study is more qualitative to the perspective of the objectives and hence making qualitative research more reliable. 3. 7 Questionnaires In this instrument,  data was covered over the required sample. The content of the Questionnaires included: †¢ †¢ †¢ †¢ †¢ Respondent’s role on the re-entry Policy in enhancing girl child education. Respondent’s compliance on the re-entry policy. Respondent’s support of the re-entry policy Respondent’s view on the measures to improve the re-entry policy. Respondent’s knowledge of the re-entry policy. 3. 8 Interview Guide Semi-structured interview were used as the main research technique in this study. The interviews covered various questions such as; †¢ †¢ †¢ †¢ The role of FWEZA in the re-entry policy. Measures to improve the re-entry policy. Successes and challenges of the policy. Compliance of the policy by school administrators. Page 9 @siamef CHAPTER 4 4. 0 Findings and Discussions of the study. This section presents research findings based on the data collected from the DEBs; FAWEZA; head teachers; teachers ,parents and students from Matero Girls High School; Olympia Park High School; Kamwala High School; Libala High School; Kabulonga Girls High school in Lusaka urban district of Zambia. The findings are given under full heading derived from the objectives of the study. 4. 1 The role of FAWEZA in the re-entry policy The FAWE representative was interviewed on the role that FAWEZA plays in the re-entry policy by enhancing girl child education in Zambia. The representative confirmed of the major role that FAWEZA has undertaken in the support and implementation of the re-entry policy. In realizing the re-entry policy guidelines, the organization has realized various initiatives to bridge the persistent gender gaps in education. To mitigate the problem, the organization conducts various initiatives. Some of the actions that are being undertaken include: †¢ Advocacy to ensure pregnant girls go back to school after giving birth and they mix freely with other pupils. †¢ Guidance and Counseling services are being offered to girls who fall pregnant in all the schools. †¢ Bursaries are offered to girls, orphans and vulnerable children. FAWEZA has been able to take over the financial responsibility for some of the most vulnerable girls. The support does not cover only the school requirements. A little extra money is given for the girls’ toiletries. Some of the girls who have had children fall into this category and benefit from the support, too. Girls who may have stayed away from school for financial reasons have been able to continue their education. Affirmative action for girls which lowers entry points into higher grades and tertiary have been implemented †¢ Workshops and discussion forums are being held to discuss challenges encountered by implementing the policy and how these can be addressed in order to reduce gender imbalance in the education sector. @siamef Page 10 †¢ Stiffer Rules have been instituted in schools that protect girl children from Gender Based Violence and other abuses. Schools have come up with strategies to help girls avoid pregnancies. One of them was Kabulonga Girls in Need Association. A teacher who saw the need for girls to talk about the problems they faced started the club. He adopted tactics that helped the girls gain selfconfidence. When FAWEZA visited the school, it was impressed by what had been achieved. The school was asked to transform the club into SAFE, an American concept that stands for the Student Alliance for Female Education. SAFE clubs, which are student networks for the promotion of female education, operate under the auspices of FAWEZA. SAFE aims to use peers or mentors to improve the wellbeing of the girl-child. The mentors come from institutions of higher learning such as the University of Zambia and the Evelyn Hone College. Girls who volunteer to become mentors are trained in adolescent reproductive health and counseling. They counsel victims of abuse, STI/HIV/AIDS and other related cases. The mentors help the club members to: ? Take responsibility and make informed choices ? Resist negative pressures ? Build their self -esteem ? Discuss issues affecting them openly and freely ? Avoid risky behavior The Kabulonga SAFE club has become a national model. SAFE clubs have been opened throughout the country. They now admit boys as supporters. This will help the boys and girls to work together and grow to respect each other. The clubs are helping remove the stigma against re-entry girls. Another intervention introduced by FAWEZA is the Communication Box. A locked box stands outside the school. Girls drop suggestions or complaints into the box. Only teachers trained by FAWEZA are allowed to open the boxes. If there are allegations against the school for further action. This has reduced cases of verbal and other abuse by teachers and students alike, FAWEZA REPORT (2004). @siamef Page 11 4. 2 Evaluation whether school managers comply with the policy In response as to whether school managers comply with the policy, respondents who responded to the Questionnaires and interviewed agreed that the Head teachers in their schools complied with the policy. Of the (5) school managers interviewed in the five (5) different schools,(100%) reported that they actually comply with the policy and follow the reentry policy guidelines. This can be attributed in the high increase in the enrollments rates. The Head teachers comply with the policy through the following processes. 4. 2. 1 Readmission of girls who dropped out. The head teachers reported that they have massively been recruiting the young mothers who had actually dropped out of school due to early pregnancies. They said they have been doing so in order to support and comply with the policy guidelines because they were involved in the formulation of the policy at its initial level, Hence they needed to add a hand in the support of the policy. The head teachers added that they do not hesitate to readmit the girls who had dropped out of school due to pregnancy or finance but the girls are supposed to produce the documents granting maternity leave and the medical report confirming pregnancy. 4. 2. 2 Moral support, encouragement and equal treatment. The head teachers reported that they have been offering moral support, encouragement and equal and fair treatment to the teen mothers with the rest of the students through the Guidance and counseling teachers in the schools. From the findings obtained, it was confirmed by the key informants that the head teachers comply with the policy. However, it can be stated that the policy faced much resentment by several figures of the public. According to FAWEZA Report (2009; 14) â€Å"In the first year or two, there were newspaper reports of head teachers who would allow girls back only after intervention by the Ministry of Education. † It can be said that at the early stages of the introduction of the policy, there was much needed sensitization on the benefits of the re-entry policy in enhancing girl child education in Zambia. In one case, during the collection and sampling stage of this research with the District Education Office (DEBs), when asked if he had any cases of pregnant girls or studentmothers in the schools, he stated that he had some â€Å"unofficial cases‘ as they are yet to be @siamef Page 12 reported to his office by the girls‘ parents. Upon further probing on the issue of officialising‘pregnancy cases and why he would not take the initiative to confront such cases, he pointed out that this is due to fear of parents‘reaction to news of their daughter‘s pregnancy. Depending on the prevailing religious and socio-cultural beliefs, parents are more likely to react negatively to news of their daughters‘pregnancy. This view was shared by two other teachers from the schools that took part in this research. 4. 3 Response of the Policy by the pupils Views of the girls who responded to the Questionnaires converged with those of the head teachers, teachers, and the parents. Both categories of girls interviewed stated that the policy was good and it was well responded to although it did not address most of their concerns. When asked what their concerns were, adolescent schoolgirl mothers reported that the policy should have spelt out the need for providing counseling sessions to those who returned. They reported that while at school, they felt stigmatized by their friends and teachers through derogatory remarks such as addressing them by their children’s names: â€Å"Bana Mary (Mother of Mary), aunt Lucy etc† which made them feel out of place. It was the view of the pupils that the Ministry of Education was doing very little to enforce the implementation of the policy and ensure that girls who  returned to school were protected from verbal abuse by the teachers. At least 63% of the girls reported that they faced challenges with regard to combining the two roles of being a mother and a schoolgirl particularly when their children fell sick or needed to be taken to Under 5 clinics. They reported that they absented themselves from school and missed classes whenever they had to take their children to hospital. They further reported that the policy should have put in place mechanisms for following up those who for some reason decided not to return. At the household level, three key factors prominently influence the likely-hood of young mothers returning to formal schooling. These factors are; fathers support over the decision to return to school, the structure of the house-hold, and finally the availability of financial support from either the young mother‘s children partners or the extended family. Evidently, household characteristics and behavior have a strong effect on the re-entry policy; more so parental and community willingness to support school re-entry for the young mothers, most of whom are jurally minors. At another level, how the households interact with other institutions and the external socio-cultural environment that mediates these interactions @siamef Page 13 may affect the chances of schools re-entry. These factors have to be identified and understood by policy makers and programme managers if education for all including student-mothers is to be realized. 4. 4 The re-entry policy a success or failure FAWEZA has been successful in implementing programmes to achieve its objectives. Among them are the programs designed to improve performance, progression and completion rates such as theScholarship program that has seen 2,426 girls and 1287 boys completing the 12 year cycle. Further,a total of 27 students completed tertiary education. Further, the SMT programmes have stimulated the interest of girls in participating in the activities and are performing well. In the quizzes held in SP2005-2009 there were more girls scoping prizes than boys. In program area two, FAWEZAcontinued to sensitize communities on the policies that protect girls’ education. At school level the informants were asked if the policy guidelines were clear enough to provide them guidance for implementation, more than half (60%) of the informants, a majority of whom were teachers and headteachers (4), reported that because the policy was new, they needed to be oriented to it, before being asked to implement it. 4. 5 Do teachers and Parents support the re-entry Policy? In response to the support of the policy, (8) 80% of the parents who responded to the questionnaires were in favor of the policy. Though, (2) 20% of the parents were not fully sure of the re-entry policy guidelines. Of the teachers who were against the policy, (3) 30% were men and (7) 70% were female who reported that they fully in support of the policy. Therefore, only male teachers have remained constant in opposition to the policy. Commenting on this, one girl said the male teachers and the boys who were still against the policy were afraid of facing the mothers of their children every day. A female teacher said men like to dominate. When they see an intelligent girl, they want to curtail her education. They will do all in their power to frustrate her, including making her pregnant. Parents reported that the policy has made both boys and girls reckless. There was a feeling that the re-entry girls were in a vulnerable position because male teachers and schoolboys perceive them as having low morals. They come back with the sole purpose to study and pass their examinations. Therefore, they become better students. There is fear among some groups e. g. the parents and the teachers that the policy has led to increased cases of pregnancy @siamef Page 14  among the school girls. The policy has been looked at as a lee way to immorality because the girls definitely know that they be returned to school. 4. 6 Support of the re-entry policy When informants were asked to state the kind of support they received from the ministry to implement the policy, the DEBs and the school level implementers reported that they had received funds neither to photo-copy the circular for the parents and/or the Parents Teachers Association (PTA) nor to conduct local sensitization meetings on the policy. At the same time, the DEBs stated that the ministry was committed to ensuring that the policy gets fully implemented in all schools. Funds were planned to be set aside to conduct â€Å"massive sensitization meetings† and workshops targeted at school level and members of the public. FAWEZA organization on the other hand reported that they were planning to advocate and lobby members of parliament and some permanent secretaries to ensure that the re-entry policy be included in the Education Bill which was to be tabled in parliament in July 2010. It is evident from this finding that the policy was introduced in schools before it was discussed and enacted in parliament. The finding echoes that of Hoppers (2007) in Uganda in which he described the decision by some policy actors to implement a draft version of the policy before it is submitted to parliament. Similarly, the re-entry policy in Zambia was first declared as a policy by the then minister of education before it was discussed in parliament. 4. 7 What measures can improve the re-entry policy Respondents were asked to give measures to improve the re-entry policy. Their views were critically assessed and analyzed. In order to ensure that re-entry programmes are successful; the following measures were outlined by the respondents in implementing the policy: 4. 7. 1Political Will: The Zambian government did not capitulate, even when there appeared to be more voices against the policy, than those which support it. It maintained that expelling pregnant girls would make gender equality in the education system impossible. Hence, there is need to follow the political will of the nation @siamef Page 15 4. 7. 2 Guidelines: Availability of proper guidelines on how re-entry policy will be conducted is very essential. The guideline development should involve all stakeholders including the teen-mothers. The policy should be geared upon providing an opportunity for these girls to obtain another chance into the education programme and not to perpetuate immoral behavior. 4. 7. 3 Acceptance of Change: There is a need for community to change and accept that this program is for the benefit of the girls and the community at large. In Zambia after seeing the benefits of the program many families have accepted and supported their children. 4. 7. 4 Financial Support Not only to take over the financial responsibility for some of the most vulnerable girls. A little extra money to be given to the girls’ for other needs such as sanitary pads is essential. Some of the girls who have had children fall into this category and can benefit from the support, too. Girls who may have stayed away from school for financial reasons can continue with education. There is great awareness that there is a fear among people that re-entry of young mothers to school might influence others to immoral behavior knowing that they will also be readmitted if they get pregnancies. But studies in the area have shown that there is no concrete evidence which reveal constructive societal returns from expelling pregnant schoolgirls and young mothers from education. However, parents, community and the government at large should provide life skills education for girls and boys to make them aware of effects of pregnancy and should be encouraged to be more responsible for building their future through education achievement 4. 7. 5 Strengthen rules regarding the policy. Regarding the strengthening of the rules, 45 (90%) of the informants reported that there was need to strengthen the rules. In Zambia, the policy guidelines states that once the girl has been given maternity leave, the father should also be suspended from school until the girl returns to school. If the teacher is the one responsible for the pregnancy, it states that the teacher should be disciplined.

Relationship between Accounting Information and Market Risk

Relationship between Accounting Information and Market Risk Financial theory describes risk assessment as one of the most important part in an investment decision making process.  However, for a risk to be known, it is important for investors to interpret information flowing on the market. This study aims to examine the association between accounting information and the market risk over time. It also evaluates how far the beta value and accounting variables can be useful for investors in Mauritius. Beta estimates are calculated using Capital asset pricing model and accounting risk variables are derived from theoretical foundations and prior empirical findings. The relationship between the financial ratios and the level of systematic risk is obtained by regressing the variation in the beta against changes in the accounting variable. The empirical evidence shows that beta is valid on the Stock Exchange of Mauritius (SEM). However, the power of beta is relatively low in capturing the systematic risk. This finding is in line with Campbell (1995) who obtained similar observation for emerging equity market and with Bundoo (2000) who noted same result. Finally the result shows that a strong association exist between accounting variables and market risk and it also observed that this relationship is consistent over time. Accounting variables like growth rate, debt ratio, asset size, liquidity, profit margin and accounting beta are able to capture market risk where beta generally provides a high explanatory power of systematic risk. The findings contradict the some of the association between the market risk measures and accounting risk measure obtained Beaver et al (1979).   1  Introduction The growth experienced in the Stock Exchange of Mauritius (SEM) during the years 1989 to 2007 was with no precedence. Stock prices of quoted companies on the SEM boomed, causing a high influx of capital which caused the market to rise to its peak with a net market capitalisation of MUR 173 billion in the end of the financial year 2007. Local investors who had investments in fixed deposits from local commercial banks shifted some of their investments to the SEM, with view of higher return. But Stock prices started to fall soon after the end of the month of February 2008 and within a year the SEMDEX reached a position which was a low as the values experienced in September 2006. While this fall was largely attributed to the morose international situation, as a result of the international financial crisis; there is also the question whether the SEM effectively capture risk which is inherent by companies quoted and how far investors in Mauritius used the publish financial information to evaluate and predict the level of risk in the operating environment. Financial markets serve a key purpose in an economy by allocating productive resources among various areas so as to enable an efficient resource allocation, across different firms, investors assess the security and market expected prospects and risks and form a portfolio of investments based on their assessment. Security analysis usually involves an evaluation of the financial position and performance obtained from the financial statements published periodically by companies. In an efficient financial market the share prices is expected change to the fair value of the firm as new information flows into the market. Financial theory describes risk assessment as one of the most important part in an investment decision making process. The return of a stock is often considered to be narrowly related with the risk which the investor is taking while holding that stock. This makes the generally accepted principle that the higher is the risk in investing in an asset, the higher should be the asset’s expected return. This implies that there is a positive correlation between risk and expected return in holding a stock. 1.1  Problem Statement The analysis of stocks return is intricately linked with the analysis of risk. Empirical studies carried by Graham et al (2001) has shown that the Capital Asset Pricing Model (CAPM), (an asset pricing tool which uses risk as a basis to calculate assets return) is used, by more than seventy five percent of the chief financial officers, as primary tools in the portfolio selection process. However some authors in the capital markets literature (Campbell (1995) and Chan et al (1991)) have argued that in the case of emerging stock exchanges the CAPM is inapplicable and beta is not significant. However, for a risk to be known, it is important for investors to interpret information flowing to the market. Fama (1963) described three generic forms of market efficiency based on the market reaction to inflow of information. Markets which react to all past information are said to be in its weak form, those markets which react to all past and publicly available information are referred to as semi-strong efficient markets and those which react to all past, public and private information are considered as strongly efficient markets. A study made by Bundoo (2008) showed that Stock Exchange of Mauritius (SEM) has the characteristics of a market in its weak form. This implies that the SEM effectively responds to past information. Yet there is absence of empirical research which evaluates whether market return and risk are effectively pictured through accounting ratios. 1.2  Aims and objectives This paper aims at analysing the share prices in the SEM and key accounting ratios to evaluate the financial position, performance of a sample of companies quoted across various economic sectors of the SEM with the view of answering the above question. It also seeks to test whether investors can trust beta in their decision-making process on the SEM. The paper also aims at: understanding the relationship between the financial ratios, market return and risk; estimating the level of systematic for different business segment where financial market information is not available; and to guide investment in measuring the systematic in private and non listed companies in Mauritius. 1.3  Organisation of this paper The paper is organised as follows: Chapter 2 provides a summary of literatures concerning risk measures, accounting tools and market-based models to measure the performance and risk; It also surveys the empirical researches on the SEM  and similar markets; Chapter 3 develops the models which are to be used in the analysis of the relationship between systematic risk and accounting ratios; It also outline the methodology and sample data which is used in the analysis; Chapter 4 presents the key findings from the study and Chapter 5 concludes the paper. 2  Literature review Risk and return of a firm are the two most important factors in the development of financial strategy for both individual investors and firms. Risk is inherently multi-dimensional and as such it has multiple characteristics which may be classified as financial and non financial. These characteristics make up the risk profile of a security, which is generally observed as changing with time and at different levels of a market. These changes in turn, impact on the return of the investors either by creating value or destroying the initial value before the investment.   Modern financial theories have proposed different models which are founded on sound theoretical analysis which can be used to estimate the different degree of riskiness of a particular security. These risk measures are then used in valuation models to estimate the return which an investor, with a defined risk attitude, can expect from an investment. As described in chapter 1, above, the applicability of such financial theories remain untested in many emerging markets. This chapter reviews the financial models which are commonly used by practitioners for estimating of the risk of stocks and stock market and their corresponding returns. It also summarises the main financial ratios which are used to analyse the financial risk, financial performance and the value of the firm. Finally a summary of the accounting tools and market-based models to measure return is also presented. 2.1  Risk It has always been difficult for practitioners to reach a consensus on the definition of risk. Moles (2004), nevertheless, provides a simple definition which is taken in this paper as basis for risk measurement. He defines risk as â€Å"the chance (or probability) of a deviation from an anticipated outcome†. With this definition it is implied that risk is made up of at least these 3 elements: 1.  probability: which means that risk can be quantified and expressed as a parameter, number of value; 2.  deviation from anticipated outcome: which is extent to which the actual result may deviate from that which is expected; 3.  anticipated outcome: this means that it is the consequence of the actual results deviating from the expected results that leads to risk. Newbold et al (2003) states that probability can be measured using past data by considering the proportion of times that an event occurred. For the case of an investor the anticipated event would be the financial return which he or she can expect by holding an asset. The measurement of the deviation from the anticipated return is normally done using the standard deviation of returns generated by an asset with regard to the expected return. 2.1.1  Systematic and unsystematic risks The deviation from the anticipated return is caused by is explained by 2 levels of risk: systematic risk and unsystematic risk.  The sum of these two main categories of risk is the total risk to which an investor is exposed to. Systematic risk is associated with overall movements in the general market or economy and therefore is often referred to as the market risk. The market risk is the component of the total risk that cannot be eliminated through portfolio diversification. Unsystematic risk which is a component of the portfolio risk that can be eliminated by increasing the portfolio size, the reason being that risks that are specific to an individual security such as business or financial risk can be eliminated by constructing a well-diversified portfolio. 2.2  The Capital asset pricing model Markowitz (1952) constructed a mean-variance model to observe the trade-off between risks and return. The model mathematically proved that return can be maximised, while minimising the overall risk, by holding a diversified portfolio. The idea was based on the concept that securities that are inversely correlated or having coefficients which are less than one. Such negative or low correlation coefficient results in a low covariance between securities in the portfolio. The low covariance implies a comparatively low level risk. However, Sing et al, (2001) observed that the model ignore the general risk-averse attitude of most investors. The Capital Asset Pricing Model (CAPM), developed by Sharpe (1964), is based on the framework set out by Markowitz (1952) which considers that investors invest their money in a portfolio of assets. The CAPM states that the return which a risk averse can expect from investing in a risky asset is a risk premium over the risk free rate. The formula 1 below states the formula which can be used to calculate the expected return. E(Ri)  = Rf +  i  (  E(Rm)   Rf  )  (2.1) where: E(Ri)  Ã‚  expected rate return of stock I; i  Ã‚  relative risk of share I; E(Rm)  Ã‚  expected rate return of the market portfolio; and Rf   risk-free interest rate. Sharpe (1964) and Lintner (1965) explained that the correct measure of risk of an asset is its beta factor, a standardised measure of the systematic risk and that the risk premium per unit of riskiness is the same across all assets. CAPM has been developed by considering some assumptions such as normal distribution of assets return, perfect divisibility of assets and return, the existence of a risk free rate, perfect market conditions, inter alia, which might not exist in the real world. Despite the fact that most of the above assumptions are neither valid nor fulfilled, the CAPM has become an important tool in finance. It is widely used by finance practitioners for assessment of cost of capital, portfolio performance, portfolio diversification, valuing investments and choosing portfolio strategy among others. The ÃŽ ² factor in the equation 2.1 measures the volatility of the specific asset with regard to the volatility in the market, that is, the market risk. Mathematically it is expressed as in equation 2, below: (2.2) where: systematic_riskasset = covariance of the asset and that of the market market_risk is the volatility in the market portfolio, it is measured by the standard deviation of prices of the market portfolio. 2.2.1  Empirical review of Capital asset pricing model The empirical studies undertaken by Jensen et al. (1972) found supportive evidence for CAPM. The authors found that the actual return, for a sample of companies quoted on the New York Stock Exchange (NYSE), were consistent with the predictions of the CAPM.  They noted that the relationship between the average return and beta was very close to a linear one and that portfolios with high betas had high average returns. The same result was confirmed by Black et al. (1972), who studied of all the stocks on the NYSE over the period 1931-1965. Black et al. (1972) formed portfolios of stocks and analysed the abnormal return with regard to the beta factor, and found a linear relationship between the average excess portfolio return and the beta. Black et al (1972) observed that the beta factor measured the responsiveness of the share return to changes in the returns of the market. Stocks with high positive betas had stock price which rose faster than the market. This implies that high beta stocks bear a higher degree of risk compared to stocks which have their beta factor as negative. Stock with negative beta behave negatively to changes in the market, as such, in a bearish market, it is more attractive to invest in these stocks as it helps to preserve the value of the investor. Fama et al. (1973) also observed a larger intercept than the risk-free rate when analyzing the return against risk. They confirmed that there is a linear relationship between the average return and the beta, even over longer period. They further investigated whether the squared value of the beta and the volatility of assets returns explained the residual variation in the average returns across asset and found that, in addition to portfolio risk, there are other variables that affect expected return. 2.2.2  Critics against Capital asset pricing model There has been also several criticism of the applicability of the CAPM in many markets. Empirical research undertaken by Basu (1977) proposed other factors which have to be considered instead of relying wholly on a single variable, beta. According to Basu (1977) the price earnings ratio has a great influence in market return. Banz (1981) challenged the model by indicating that firm size have a considerable impact on the average returns of a particular stock and thus firm size could better explain the volatility than the market beta. The author observed that the average return of small firms were higher than the average returns on stocks of large firms. Chan et al (1991) made a further observation, on the Japanese market, that stocks with high ratios of book value of common equity have significantly higher returns than stocks with low book to market equity. In this respect, book to market equity started to be regarded as being an important variable that could produce dispersion in average returns. Fama and French (1992) came up with the conclusion that a more realistic approach of the risk in the market is the multi-index models. Their study concluded the findings of Basu(1977), Stattman (1980), Banz (1981) and Chan et al (1991) who argued that size of the firm and the books to market equity ratio are far superior in explaining asset returns. In contrast with CAPM which can be considered as a single factor model, Ross (1976) proposed a multifactor arbitrage pricing theory (APT).  Groenewold et al (1997) examined the validity of the model for Australian data and compared the performance of the empirical version of the APT and the CAPM. They concluded that APT outperforms the CAPM in terms of within-sample explanatory power. The APT, however, is a generic model and does not specify any factor which has to be considered in analysing return with regard to risk. 2.2.3  The ongoing debate on the applicability of Capital asset pricing model Nevertheless, there is no consensus in favour of CAPM due to the disparities in the empirical findings and the debate continues. In general, the studies challenge the data used by Fama et al (1993). Kothari et al (1995) argue that the findings of Fama et al (1993) depend essentially on how the statistical findings are interpreted. Amihudm et al (1992) and Black (1993) supported the idea that the data are too noisy to invalidate the CAPM and showed that when a more efficient statistical model is used, the relationship between average return and beta is positive and significant. The author further suggested the findings in respect of size effect could be simply in a sample period effect and that it may not be noted in another period. Similarly, Berk (1995) questioned the findings of Chan and Chen (1991). The author emphasised that stock prices (and market value of the equity (MVE)) depend on the expected future cash flows which is used by investor to estimate the risk and the required rate of return. Therefore, if two companies have a higher discount rate and consequently its price and MVE will be lower. In this sense, MVE captures the information about the company’s risk, since any change in investors’ perceptions of risk is immediately reflected in the stock prices. Furthermore, when the expected return of a firm is defined as the expected cash flow divided by its MVE, the relationship between MVE and return is clearly negative for companies with equivalent cash flows. Berk concludes that for companies of similar cash flows, the higher the risk of the cash flow, the higher the discount rate investors apply to it, which causes price to decrease and expected return to increase. This concept has contradicted the findings of Chan and al (1991), which attribute higher returns to smaller companies. Owing to its intuitive appeal, the CAPM has become an important tool in finance for assessment of cost of capital, portfolio performance, portfolio diversification, valuing investments and choosing portfolio strategy among others. However, there is no consensus in the literature as to what a suitable measure of risk is, and consequently, as to what is a suitable measure for evaluating risk-adjusted performance (Galagedera, 2007). As such, the debate for robust asset pricing models continues. Other studies (Ball and Brown (1969) and Beaver, et al (1970)) have focussed on accounting variable to convey information about the market risk. 2.3  Accounting variables as a measure of systematic risk Research in accounting variable as a measure of risk has increased considerably since the last forty years with a number of published papers by Beaver et al (1970), Lev et al (1974) , Bernard (1989), Ohlson (1995), and Kothari (2001). Beta measures the relative risk whereby risk itself is determined by some combination of firm characteristics, market conditions, and the sensitivity of the firm stock to market conditions. As such, understanding the relationship between the accounting variable and the systematic risk can provide an alternative basis to a market based estimation and prediction which will in turn guide the accounting policy formulation and investment decision making (Brimble et al, 2007). The study by Beaver et al (1970)  was the most quoted research in accounting and financial research. The author had improved the perdition of systematic risk by considering the firm specific characteristic and they identified significant association between market risk and firm specific accounting information. The financial statements of firms were mostly used in providing considerable information that could be used to measure the inherent risk. In fact, the Financial Accounting Standards Board (1983) stated that the objective of financial reporting is to provide information that is useful to present and potential investors and creditors and other users in making rational investment, credit, and similar decisions. A number of studies investigated how financial information becomes impounded in security prices and affects investment decisions. These accounting data are converted into the financial constructs, such as growth, operating leverage, profitability, liquidity, and efficiency. There is considerable evidence that since the late 1800’s ratio analysis has been widely used in the valuation of published financial data (Connor, 1973). Researchers and investors use mainly financial ratios for risk modelling purposes based on different criteria of comparison which are discussed as follows: Time series analysis: It also known as trend analysis and it is used to compare financial ratios over a period of time. Ratio analysis for one year may not present an accurate picture of the firm (Rao, 1989).  As such, to appraise a firm’s performance, the present ratios need to be compared with the past ratios. Cross-sectional analysis: This method compares ratios of one firm to the ratios of some other selected firms operating in the same industry at the same point in time (Pandey, 1999). Such comparison indicates the comparative financial position and performance of the particular firm. Industry analysis: According to Pandey this type of analysis helps to ascertain the firm’s financial standings and capacity vis-à  -vis other firms in the same industry. A study conducted by Beneda (2006) indicated that commercial lenders often consider the use of industry ratio analysis to be critical with regard to the potential success of the business. The main shortcoming of this analysis is that it is difficult to obtain the average ratio of an industry and if available the average ratio is composed of both strong and weak firms. Financial ratios were used for locating possible takeovers and mostly to predict major events such as corporate failures (Scott, 2004). Other studies reported on an association between accounting ratios and market risk measures, and proposed that certain accounting ratios can be used as proxies in predicting future security (Beaver et al. 1970; Elgers and Murray, 1982). 2.3.1  Usefulness of accounting variables The use accounting as means of estimating the systematic risk will allow the user of the financial statement to assess the investment alternative in terms risk, return and the value of the firms. Ryan (1997) has widely discussed the motive for relating accounting research to measures of market risk: The volatility of market betas over time indicates that the ex post measure of systematic risk is does not provide meaning full information in estimating the future risk. As such, understanding the relationship between accounting variables and systematic risk could indeed be useful in measuring and predicting the actual and upcoming market risk. Market based measures of risk, like the capital asset pricing model, fail to consider most of the firm specific characteristic such as the operational factors and environmental contingencies which influence risk. The accounting risk based information gets closer to the identification these economic fundamentals. Therefore accounting model provides an actual risk determinants rather than just determining the level of risk. Accounting risk model overcome the conventional problem were ex post measure of risk can not be applied due the fact that historical security returns is not available or insufficient like in the case non listed entities and for initial public offering Accounting variable are not affected by the noise found in traditional risk estimates which rely on past trading histories whereby significant variation in one period subsequently affect the overall risk level ; The development of trading strategies and the construction of portfolios with the desired level of risk. 2.3.2  Theoretical and empirical review of the relationship between individual accounting variable and systematic risk. Researchers on the association between systematic risk and accounting ratios were primarily initiated by Beaver (1970). The ratios used by the author were dividend payout, growth rate and leverage ratio, liquidity ratio, variability of earnings and co-variability of earnings. Other studies have further elaborated on these ratios and they also added other accounting based to measure the systematic risk. All these ratios aim at measuring the operating risk, financing risk and growth risk. The theories and empirical finding between these two variables are discussed as follows: Dividend Payout Corporate dividend policy has been the object of lively discussions in finance literature. The debate has revolved around the question of whether companies with generous distribution policies are less risky and whether there exists an optimal payout ratio. Theoretically, it is often asserted that firms with low payout ratios are more risky.  This is because that cost for external finance is relatively high for risky firm than firm with low risk. In this respect, risky firms rely on the utilization of their own reserves to carry out business activities. Dividend payout also affects the systematic risk by the information perceived by variation in the dividend policy. The original idea behind the information content of dividends, was developed by Lintner (1956) who claimed that managers only increased dividends when they believe that the levels of the firm’s earnings have permanently increased. He argued that decrease in dividend may be interpreted as cash flow or liquidity problem. Miller and Modigliani (1961) have argued, on the other hand, that dividend policy is irrelevant to the market value of shares. In a model which disregards taxes, they conclude that the payout policy which the corporation adopts, has no effect on the price of shares. Similarly Watts (1973) and Gonedes (1978) found no evidence that changes in dividend policy contain new information regarding firms future earnings. Gordon (1963) further pointed out that an increase in the proportion of retained profit now means higher cash dividends in the future and therefore conservative dividend policy has no effect on the risk factor. Still, Veikko (1967) explained that the higher the retention rate, the further in the future cash dividends are moved and the greater the uncertainty about their actual amount. Empirical evidence by Edward et al (1998) further showed that a significant negative relationship exists between the dividend pay out ratio and risk element. Growth rate Growth affects the systematic risk in two main ways as identified by Beaver et al (1973).  Firstly, where a firm earns excessive earning opportunities, that is, where the expected rate is higher than the cost of capital. Growth is normally attained by an expansion in the assets size either through the acquisition of new plants or by creating new product line or by takeovers.  The excessive earnings stream derived from these operations is argued to be more uncertain (i.e. volatile) than the normal earnings stream of the firm. In this respect the authors stated that a positive association exists between growth rates and risk. However, Harrigan (1984, 1986) have deepened this analysis and the author has observed different level of association over different industry life cycle characteristics. Harrigan argued that growth strategies, through takeovers and new product development, may be quite risky during an embryonic stage due to the high degree of product, process, and market uncertainty. In contrast, growth strategies may be less risky during times when demand conditions are growing in a stable manner. Finally, growth strategies are expected to become quite risky again as an industry is in transition to maturity because of the cut in the excessive earning streams. The second argument is related to the logic developed about the dividend payout ratio. Additional capital, utilized in the growth of the firm, would reduce the firm earnings in two main ways. If the expansion in asset is financed by the external debt, the firm earning would be eroded through finance cost. Whereas if the growth is financed through the retained earning, a sharp cut in earning attributable to the shareholder is expected. Both methods will ultimately lead to a reduction in dividend payout and thus increase the systematic risk. Asset Size Theoretically, larger firms are less risky than smaller firms. This is because large firms have better access to capital market, management skills and expertise and greater market liquidity. These factors provide opportunities to diversify and to seize new market opportunities to reduce operating risk which will impact on a lower beta than small firms. The studies of Dun et al (1970) reveal that the frequencies of failure are lower for large size firm than firm with low asset capitalization. Horrigan (1966) has shown that the most single important financial statement variable used to predict the bond rating of a firm was total assets. The author observed that if the asset returns are independent, the variance will decrease in direct proportion to the difference in asset size that is, as firm size doubles, the variance of the rate of return will be cut in half. Empirical work by Alexander (1949) observed that as firm size increase, the volatility in the earning streams decrease accordingly.   Moreover firm with wide operating activities are required to make more disclosure. For example the Mauritian companies act, 2001, stipulate that firms with Turnover above MUR 30 Million are required to file a complete set of financial statements with the Registrar of Companies. This information may be consulted by the members of the public upon payment of a nominal fee. Thus, more information is available to evaluate risk level. Collins et al (1987) have identified that small and recently incorporated firms have a high probability of financial distress. Accounting beta Research about the association between the market based beta and an accounting beta originated with Ball and Brown (1969). Accounting beta measures the degree of co-variability of firm earnings and the market earnings. Beaver et al (1970) argue that, if beta is being the used as the market determined concept of risk, then the most direct approach would be to compute the beta value on accounting earnings. Bowman (1969) demonstrated that the higher the accounting beta, the higher the systematic risk. Hence a positive relationship is expected between the two variables. Earning Variance The important relationship between earnings and the market beta is their covariability, accounting beta, is shown in the above. However, the empirical research has generally shown earnings variability to be superior to an accounting beta. Beaver et al (1970) found in a model that use accounting variables to forecast market risk that earnings variability was the most significant variable and that accounting beta did not make a statistically significant contribution. The relationship established by Ball and Brown (1969) is therefore theoretical. Empirical results may differ from theory for two main reasons as advanced by Bowman (1969). The assumptions (i.e there are only pure equity firms (no debt) in the market portfolio) of the theory may not be applicable to the universe being tested. Secondly, t