David the King

David the King of Israel and the 21 Irrefutable Laws of Leadership After two thousand years of being scattered around the world, the Israelites, God’s chosen people were finally able to come back to their historic home. When they finally settled in and formed a new government, they decided to have as their national symbol a flag with the Star of David prominently displayed in the center. One has to ask, of all the great and mighty leaders that have come and gone in the history of ancient Israel, they opted to have David as the symbol of unity, strength, resiliency, courage and above all integrity for the newly formed nation. This paper will look into the life of David and how he has risen from anonymity and transformed himself to become the most effective general and political leader Israel has ever known. Introduction Based on what can be gleaned from the Bible, David did not come from royalty. But his family could not also be considered as dirt poor since his grandparents according to the Book of Ruth owned land. Nevertheless, David had to work as a shepherd boy to help augment the income of his family. They also have no servants because when it was time to seek news and provide supplies to his brothers in the war front, David’s father asked his youngest son to travel instead of asking a trusted male servant to the job. The above-mentioned information is very important because it must be established that David was not groomed as a leader. It also provides contrast to the current situation in the 21st century where people are more aware of leadership quality traits and that schools and leadership programs are being established to replicate good leaders. But it was not the case with David. It can be argued that David was thrust into the limelight so to speak and he did not plot his way to the throne of Israel. When he visited his brothers, he witnessed and heard and unusual sight – the people of God cowered in fear against a man-giant called Goliath. The 8-foot plus warrior was taunting and blaspheming the Israelites and Yahweh respectively. His young heart could not take the insults and so he decided to do something about it and the rest as they say is history. 21 Laws of Leadership The fact that David did not consciously desired to be king and the fact that his family did not actively encouraged him to set his sights so high can be a very good starting point for studying the 21 laws of leadership. If Maxwell was right then even ancient peoples practiced these principles. If this study provides proof that an ancient leader such as David did indeed – consciously or unconsciously – sought out the benefits of these principles then at the end of this study one can conclude that John Maxwell was right to say that these principles are indeed irrefutable. The following pages describes Maxwell’s laws of leadership as seen in the life of David: A. The Law of the Lid- Leadership ability determines a person’s level of effectiveness David did not enroll in leadership school. His was a training program found in the wilderness. It was not formal but he desired to perfect the little talent that he had and from here he accelerated faster than the others did. During this time all he knew was three skills. The first one was to tend sheep; the second one is the ability to ward off predators using a slingshot and stick; and finally the ability to play the harp B. The Law of Process- Leadership develops daily, not in a day There were others who probably knew the same skills set as David but he became an expert in the little things on a daily basis he practiced the playing of the harp and the dead aim of a slingshot-shooter able to scare away lions and bears. He kept plugging on it until his fame grew as a young boy eager to please his father and also as a budding musician skillful with the harp. Because of constantly desiring excellence even in the little things, David was rewarded in his efforts. The news of a good musician skilled in the art of providing happiness to a gloomy heart reached the ears of a depressed King Saul. This was the beginning of an accelerated development process for David. On the part of David, it is very probable that he was not there absentmindedly fiddling with the harp but actively soaking it in learning all that he could. Now, the young is not only learning about the ways of sheep, lions, and bear he is also beginning to get an insight into the ways of a leader in the times when he was called into the palace. During this time, David had insider information as to how a government should be run. There were only a few young men given the privilege of doing so. C. The Law of Intuition- Leaders evaluate everything with a leadership bias There were many examples in his life when one can see this principle regarding intuition is in full display. The first one is when he faced Goliath. David did not grandstand or acted foolish as was suggested by his brothers. God knew what was going on, David was prompted by something so profound that no one in the whole camp was able to understand except this young man. The leader’s intuition was first displayed here when David refused to back down from a blasphemer and instead asked permission to go to battle with the giant. The second time this intuition was on display was when David refused to glory in humiliating Saul and finally when his enemy was killed he did not gloat and showed tremendous restraint choosing instead to mourn the former ruler of Israel. In this way David demonstrated a leadership bias and not merely someone following the dictates of emotions. D. The Law of Influence- The true measure of leadership is influence When David decided to become a dutiful son he immediately became an influence in his region. He was well known and it is the reason why he was brought to the palace of the king. Yet his influence grew even more in his association with the king. Finally his capacity to influence others grew exponentially when he destroyed Goliath. This capability was in full display when was able to convince the King that the whole nation should put their trust in him, knowing fully well that if he failed then Israel will be enslaved by the Philistines. His ability to influence grew as he was considered as Israel’s new hero. The Adult Years In the second phase of his life, David finds himself married, a successful career in the military and serving a delusional king, severely depressed and jealous of his success. It was at this time when he was driven out of the palace and he survived by living in caves. It is also at this point in his life when one can observe the following leadership principles come into play: 1. The Law of E.F. Hutton- When a real leader speaks, people listen 2. The Law of Respect- People naturally follow leaders stronger than themselves 3. The Law of Magnetism- Who you are is who you attract 4.The Law of Solid Ground- Trust is the foundation of leadership 5. The Law of Empowerment- Only secure leaders give powers to others 6. The Law of Connection- Leaders touch a heart before they ask for a hand The people that he met – during the time when he was Public Enemy No. 1 – were acknowledged to be fugitives like David. Many were the dirty dregs of society and the Israeli military would love nothing but their capture. Yet it was from this group that David handpicked his future leaders and used it as the core to create one of the most feared armed forces in the history of ancient warfare (1 Sam. 22). This could only happen if David was able to practice the 8 leadership principles listed above, including those mentioned previously. The desperate men gathered in the caves listened to David because they believe in him and they respect him because they sense that he is a man of inner strength. They probably heard that he was the one who had slain the giant while he (David) was still in puberty. They may have also figured out that Saul is hunting him down though he is innocent. So they were attracted to him because like them he has full of potential but circumstances conspired to make him a lesser man. It is also because of David’s loyalty to Saul – in spite of the king’s ingratitude – that made the people feel that they can trust this young man. So by training them and teaching them how to behave like a disciplined military unit, he was able to touch their inner being and he was able to empower them. Reigning King The following principles are evident even before he was making a push to ascend the throne of Israel. But it was only when he reached manhood when David was mature enough to display the following: E. The Law of Navigation- Anyone can steer the ship, but it takes a leader to chart the course For many years, David was living in a remote outpost far from Saul. But when Saul was dead he knew that the best step is to go to the capital and claim what was rightfully his according to the late prophet Samuel. F. The Law of The Big Mo- Momentum is a leader’s best friend David allowed his organization, his small band of men to gather momentum. There is no use charging a fortified target if the group is not yet ready. Momentum was building for years and when he was ready he made it known that it was time to go to Jerusalem. G. The Law of Timing- When to lead is as important as what to do and where to go Those who are eager enough to seize power and those who are foolish enough to charge in without being sensitive to what is happening all around him is not a good leader. David demonstrated his knack for timing when he did not immediately enter Jerusalem after Saul’s death. He waited until he has gathered enough support – until his army is ready to face whatever it is that the enemy can throw against them. H. The Law of Production- It takes a leader to raise up a leader One of the main reasons why David was able to establish a strong government can be attributed to his ability to raise up leaders. He was able to train former fugitives who used to have no direction in life until he stepped in and intervened in their behalf. The result was awesome, a multitude of military leaders were equipped and made ready for battle. I. The Law of Buy-In- People buy into the leader and then the vision Aside from leading a band of former fugitives to capture Jerusalem and other key areas in the Promised Land, the vision that David provided for his men were almost impossible to achieve. The men who went with him in pursuit of the dream have to believe first in David before they could follow him into harm’s way. J. The Law of the Inner Circle- A leader’s potential is determined by those closest to him It is important to note that David’s capability can also be determined by the caliber of people that he surrounds himself with. According to 2Sam 16 it was not only efficient military commanders that comprise David’s inner circle but also religious men who are also an important component of Israel society. K. The Law of Victory- Leaders find a way for the team to win David, it seems, can find the solution to his problem in just the nick of time. He saw the weakness in Goliath’s armor and he was well aware of his enemies weaknesses and strength allowing him to become Israel’s’ most victorious military strategist. L. The Law of Priorities- Leaders understand that activity is not necessarily accomplishment When Absalom, David’s son decided to rebel against his father and tried to usurp the kingdom, David did the unthinkable. He retreated and crossed the Jordan. He saw no reason to fight Absalom and engage him head on. He was criticized by this act but he demonstrated that it is not only ruthless action that can win wars. M. The Law of Sacrifice- A leader must give up to go up It is too many to count the times when David decided to sacrifice something in order to win. The first time that he demonstrated this is by obeying his father and doing all the tedious work needed to support his family. The second incident is when he decided to run away rather than to stage a coup against his King Saul. N.The Law of Explosive Growth- To add growth, lead followers-to multiply, lead leaders In the earlier part of his reign David was able to grow the army in size and potency in warfare. David has at least thirty chiefs responsible for hundreds of men. On top of this there are many that defected to David to increase further the strength of his army. O. The Law of Legacy – A leader's lasting value is measured by succession Before he died, David left the Kingdom of Israel into the hands of capable men. One of them is Solomon who grew up to lead Israel into its golden age. But there is perhaps no other legacy that David left behind than to prepare a bloodline from which Jesus Christ will come from. Conclusion Even though the 21 laws of leadership was a modern take at leadership principles and values; it is clear to see that ancient men were able to observe and practice them. One of the ancient rulers who benefited greatly from the wisdom of the 21 laws is a young man called David. He was once a shepherd boy who grew up to become one of the most beloved and one of the most accomplished military general and ruler of Israel. References Maxwell, J. (2007). The 21 Irrefutable Laws of Leadership. Retrieved from: Â  Accessed 17 September 2007. Holy Bible. (2005) Today’s New International Version. CO: International Bible Society. Â  

I Want to Be a Nurse Essay

Writing assessment Empire college offers a unique learning environment for the busy learner who may be juggling a number of roles, spouse, parent, manager, entrepreneur, volunteer, caregiver, and more. We offer a flexible learning environment, with individually designed degree programs, and opportunities to study online,face to face, or a combination of the two. In a type essay of no fewer than 300 words, please describe: 1. Your reason for applying to Empire State College. 2. Your personal and professional goals, and what topics or areas you hope to study 3. Your strengths and experiences (educational, employment, community and personal background) that will make you a successful student in our learning environment. MY LIFE STORY Life is a long journey to seek happiness and great joy! Sometimes we can successfully overcome some kind of hardships in life and sometimes we are still struggling and suffering but don’t ever be despondent. No matter how hard it is, as long as you stay persistent and self determined you will overcome those obstacles. There were so many stages on my risky challenge journey to find a happy life! To know who you are you must know where you began. My life starts in a small village in Viet Nam. Despite growing up with a privilege life full of food on the table, a warm bed to sleep in, plenty of toys†¦It is human nature to want what I don’t have-nurturing parents. My parents worked very hard to provide a better life that they never had. I and three of my brothers were grown up with unhappy childhood. We never had time to play with friends, go to the park or even get any gift on our birthday †¦.All of us had to work after school to help my parents earn more money for food and others basic shelters. When I was in the middle school I had to do all of the housework and trading in the market for foods. I believed that is why I am so independent on my life. MY name is â€Å"My† which is often misspelled and misunderstanding. But it carried a full meaning to my parents. First it means beautiful. Second it links to a country â€Å"United State of American†. When I was a kid my parents usually tell me about how wonderful American are which in . Wealthy, Independence and freedom†¦ In 1987 when I was born my parents escaped from Vietnam to United State of American to explore a new life with a standard living but they failed and I was named â€Å"My† to chase my parents dream. I and my Parents had shared about â€Å"American dream† since I was 10 years old. I always dreamed of get out of my small village to fulfill my family dream and make a better life to help my parents who had sacrifice themselves to raise us to become good persons. Even how hard they are we still go through school. I was always study very hard at school and look for a chance to study aboard in the promising land American. Time went by and even how hard my parents and I tried we still could not afford for going aboard. But I still kept thinking about this dream until one day I had got a chance to take risk to work aboard as a technician specialist named Chartered Semiconductor in Singapore. The day I left my country and my family was a gloomiest day that I never forget. I was very excited to explore about Singapore at the first time I came there. I heard that Singapore is a very high standard country. Living and working in this country I don’t have to suffer from any obstacle. But dream is always dream and when I started to work I knew that it is never easy to get what you want without skills and experiences. Things never come the way I expected. It s so much can be say for living and immersing myself in another country and multicultural. I had to face with a lot of horrible experiences at work. Especially it was so difficult for me to adjust to speak Sing-English. Co-worker made fun of my English. I was hurt like a deep wound cut inside. I was cried some nights and even I was mad at myself. But 2 weeks later I told myself not to be discouraged because I left my homeland for this and there was no excuse for me to give up. Slowly I tried to join at work, make friends and ask them whatever I didn’t understand. I found my own way to get help. I gradually created my life with a fully eye-open experience. I built a lot of intangible skills. Each situation was a stepped stone thread through to my life with so many little things teaches me independence, management, organization and the best is self-confidence. I also found my love destiny here. I met my husband at work who was a nice, thoughtful and caring Vietnamese-American. He helped and supported me during the time I was struggle and suffer at work and the new life here. Through him I had come to God and believed in God. God had leaded me the way to go further and fulfill my dreams. We married after 3 years dating. One Year later we moved to Germany because of my husband work and we stayed there for 1 year and 4 months. From this time, I was really enjoy my life. I has chances to experience plenty of new things with my flesh eyes which I had read in books and surfed on Internet. I knew more about amazing country over the world and I was so interested to learn so many things about social, history, custom, religious about Germany and European. I had built a very good relationship here. I will never forget about this wonderful period of my life. And I, now finally, am here in New York. Enjoy my second winter. My dream about American for a long time had come true. To me, New York was a far-away and strange land at the first time. I was scared and lonely for almost 3 months. I and my husband moved to New York last winter in October 2011 and we experienced 2 terrible storms then we settled up everything to get ready for a lot of plans. I could not forget the first time my husband teach me to drive. My heart was bumping and my palm was sweat. I tried to get my driver license other way I had to stay at home. And now I can I drive to library every week, found a good job, made good friends and had plenty of good relationships, and the best thing is I will be Baptism next month to become a Catholic Christian. Thanks God blessed for me onmy life. I had so many goals and I had made them come true. I was on phone with my Mum on my 27th birthday. She said she is so proud of about me that I made her happy and the most important she asked me â€Å"What are you going to do next?† Five years living aboard is such a long time, but it goes so fast. I did not let any hardship hold me back and I am going to go through another bigger goal which is go to college and I will never stop to achieve my dreams. I was interested in Health filed and I always wished to become a helpful nurse when I was very young. Being a Vietnamese girl learn English to become a nurse is my first and forehead goal I want to do in this coming year. I would love to care about people and make them happy. My motivation is 4 year college and then go to study beyond later if I have a chance because education never stop. There are a lot of things to do in this country. I still want to have a good future with a solid stepped stone in life and a loving family. I will raise my children to become a successful person. They will use my experience story as a role for them to work hard and to be successful in their lives. And I have to say my heart was burning when I found Empire State Community college. I really want to get my degree here so desperately. Empire State community college offer the course which I interested in with flexible study option and it have great faculty, also a warm and diverse community and interesting traditional according to students. I can decide how, where and when I sturdy to complete my education.That’s great. I have a long way to go but I will do my best to reach my goals. Yes! Everyone have a story-history that has made them the way they are to make a happy life! And that is who am I!

Scientific Management Theory and Inefficiencies in Healthcare

Based on the scientific management theory, what are some of the routines in health care that seem to be inefficient? What examples of participative decision making exist in your workplace? Provide your rationale. The Scientific Management approach was initially described and theorized by Frederick Winslow Taylor in the in the late nineteenth and early twentieth century. In his book â€Å"Principles of Scientific Management†, first published in 1911, Frederick Taylor formulated a view on management that was highly inspired by engineering principles.As such, the studies of Frederick Taylor can be seen as a culmination of a series of developments occurring in western industrialized countries, in which engineers took the lead in developing manufacturing productivity and in industrializing organizations. Frederick Taylor developed Scientific Management out of the belief that tasks could be optimized scientifically, and that Scientific Management could design the best rational way o f performing any task, which would lead to enhanced productivity and profitability.Enhanced productivity would not only lead to greater profits for the employers, but also for the workers, who would be given the tools and training to perform at optimum performance. The development of best practices should be based on detailed observation of work processes, and on vigorous training and selection of the best-suited workers. The routine that seems to be inefficient in my work place is the procedure of blood transfusion.In my hospital before and after each blood transfusion the nurse has to verify all the papers with a second nurse and the nursing supervisor. This is very time consuming and delay the treatment especially at the time of emergency transfusions. So we notified this issue in the meeting and they changed the policy. Instead of nurse supervisor, nurse manager in each unit can verify the papers before transfusion and after blood transfusion nurse supervisor can review the pape rs.

Music Research Paper Example | Topics and Well Written Essays - 1750 words

Music - Research Paper Example In particular, the paper explores sweet home Alabama (SHA) that was produced with strong massage to ensure eradication of racism and slavery in various states. It recognized the imperativeness of building coherent societies, which embraces quality values in life. Similarly, lynard skynard provides sufficient information towards drug abuse eradication, which threatened to paralyze economic performance and social cohesion in various states including southern states. Various individuals who assert its relevance in building vibrant societies with superior ethical values have accepted its noble ideals. Consequently, the paper also gives an analysis of southern man Alabama song, which similarly communicated appropriate massage on racism with an aim of ensuring its eradication. Comparative and contrasting elements of the songs have also been discussed together with the songs significance to southerners. Introduction Music is a critical element in human life, which provides educative, entert ainment and social messages. Critically, it has played a crucial role in developing human behaviors in various facets of life towards building sustainable and cohesive societies. There are various categories and types of music, which are produced to convey definite and intended information to various individuals. Ideally, there is gospel music, love music that conveys love massages, hip-hop music and pop culture music which relays deep-rooted information towards shaping up cultural practices among societies. Most leaders and scholars affirm that music especially pop culture music has facilitated drastic transformation in human behavior. They assert that such informative songs have the capacity to transform ancient cultural practices and beliefs to conform to modern life practices. Variably, music provides basic ways of nurturing noble human character through systematic communication of information. Various songs take diverse dimensions and themes, which is majorly determined by defi nite information to be communicated. Songwriters and producers consider moral influences of their songs towards transformation of individual’s lifestyle which vital towards modernity. This paper explores musical pieces sang and produced by various pop artists and how they have influenced various individuals lifestyle in the southern state. Song analysis This section provides detailed analysis of three pop culture songs which includes sweet home Alabama (SHA), Lynard skynard and southern man" and "alabama which were profoundly sung by various artists with acute determination to instill admirable human practices for effective cohesion. It also highlights the songs comparativeness and basic elements applied in their production1. The songs have widely been accepted by various individuals due to their educative and entertaining nature, which is critical towards ensuring achievement of their purposes2. Critically, the songs adopted various themes with sweet home Alabama adopting un iversal theme that sought to eradicate racism and slavery in various societies including southern states. Lynard skynard adopted drug liberation, which is asocial theme with a strong focus to fight drug addiction, which has become a prevalent aspect influencing performance in various societies. Its mission has been received well with most individuals embracing its drug free concept as a pillar that ensures mutual coexistence and performance in various areas, in humanity3. Consequently, southern man" and "alabama song also adopted social and economic theme, which relays sufficient information with requisite capacity to advance social and economic settings in humanity. The songs out rightly provides quality information based on life ideals and attitude

Glycosylated Haemoglobin Essay Example | Topics and Well Written Essays - 3000 words

Glycosylated Haemoglobin - Essay Example In case blood glucose level is well within control and gives stable results, the test is performed every six months intervals. The long-term or chronic complications of diabetes are those that characteristically occur after years of high blood sugar levels. These are diabetic macrovascular and microvascular diseases. The long term complications correlate well with A1c levels.(Web ref 2). Wild and Bains (2004) cautioned clinical laboratories and point-of-care testing to be careful of the interferences produced in assays by variant Hbs. The majority arise from point mutations in the , , , or Hb chains. Herman et al (2007) also raised the important question of whether A1c can be used as a diagnostic test for diabetes detection and control in ethnic minorities whose mean A1c concentration vary significantly from whites. In the light of these observations the current project intends to analyse literature particularly on blood glucose tests, long term complications of high blood sugar and applicability of HbA1c test to ethnic diabetics. Studies have shown that glycohaemoglobin values in the "better ranges" correlate with less incidences of diabetic complications later in life (Table 1; Fig 1 b). Type 1 diabetics will typically have hemoglobin A1c levels determined every 3 to 4 months, while Type 2 diabetics will require measurements less often (Web ref 3; Web ref 1). It so because Red blood cells are replaced in about 90 days thus test gives blood glucose levels for that period. Normal blood glucose levels are below 6 percent HbA1c however these vary laboratory to laboratory (McCool and Woodruff 1999; Web ref 1) HbA1c levels compare well with blood glucose levels as shown below: Table 1. Comparison of HbA1c test and Blood glucose levels (from McCool and Woodruff 1999) HbA1c Level of control Blood glucose (mg/dl) 5 % 6% 7% 8% 9% 10% 11% 12% Excellent Excellent Good Acceptable Poor Poor Poor Poor 90 mg/dl 120 mg/dl 150 mg/dl 180 mg/dl 210 mg/dl 240 mg/dl 270 mg/dl 300 mg/dl The rapid fluctuations in blood glucose that normally occur are smoothed out and the long-term level of glucose is now available to clinicians as a HbA1c test, because glycosylated hemoglobin has been shown to correlate with the integrated average blood consumption of glucose over the preceding six to eight weeks (Nathan 1990). Moreover, No preparation is necessary. Fig1 b) Controlled and uncontrolled diabetes conditions. (from Web ref 1) Controlled diabetes, less blood glucose results in less glycosylated haemoglobin Uncontrolled diabetes, more blood glucose results in high glycosylated haemoglobin HbA1c is also a reasonably sensitive test for gestational diabetes mellitus (GDM) which occurs in pregnant women. The test when conducted on pregnant women, it could pick up 87.1 cases of GDM successfully. The study gives a good alternative to OGTT (oral glucose tolerance test) which is inconvenient and requires fasting (Aldasouqi et al, 2008). The HbA1c test earlier done in laboratories only is now available in relatively economical home version as well (Web ref 4). The control of HbA1c and avoiding long term diabetic complications are discussed later. Diabetes: An overview The word 'diabetes'

Policy Innovation Application Paper Essay Example | Topics and Well Written Essays - 750 words

Policy Innovation Application Paper - Essay Example who took a more aggressive and innovative policy in implementing greenhouse emission controls. As an example we will take the case of the Regional Greenhouse Gas Initiative and the California vehicle emission standards. The California vehicle emission standards require a limitation on the amount of pollutants that an automobile releases in the atmosphere. This also applied to other powered vehicles that include industry, small equipments (such as lawn mowers and diesel generators) and power plants where their greenhouse emission is also strictly regulated. The Federal Government of the United States regulates the emission standards of all carbon emitting motors through its agency named Environmental Protection Agency. The state of California however has a permission to implement a more stringent regulatory emission standards compared to the Federal Government’s regulatory standard. The regulatory rules are crafted by the California Air Reserve Board or â€Å"CARB†. ... It was a four year court challenge that â€Å"resulted from the California’s South Coast Air Quality Management District’s (SCAQMD) Fleet rules that required various public and private operators of fleets of 15 or more vehicles in the SCAQMD basin (Los Angeles, San Bernardino, Orange and Riverside) to purchase alternative fuel vehicles or certain cleaner fuel vehicles authorized under the California’s emission standards program (Osenga, 2004). The RGCI or the Regional Greenhouse Gas Initiative is an initiative by the states in Northeastern and Mid-Atlantic part of the United States (includes Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Rhode Island and Vermont) who committed to reduce carbon emissions from the power sector by capping it to 10 percent by 2010. It is a carbon cap and trade program whose proceeds from its emission permit auctioning will be used to promote energy conservation and use of renewable progra m (Anon., 2007). II. Which policy is more effective? The California vehicle emission standards whose rule and regulations are set by the California Air Reserve Board or â€Å"CARB† is more effective and responsive to pressing issues of pollution and climate change in the short term. The Regional Greenhouse Gas Initiative however is more effective for a longer term solution of the Greenhouse problem as it caps emission and has a component of raising funds to increase the use of renewable energy which intends to replace the carbon emitting power plants. For a more effective policy implementation of addressing the carbon emission and climate change, the combination of the two is more

Marketing Plan Assignment Example | Topics and Well Written Essays - 3500 words

Marketing Plan - Assignment Example The marketing objectives form the underlying base for the formulation of the 7Ps of marketing mix prepared for the product of Samsung Electronics. The report also includes an analysis of how the marketing strategies would be implemented in launching and marketing the Samsung Galaxy S2 in the market of the United States. The report is suitably concluded by an evaluation of the marketing strategies done in order to analyse and assess the expected impacts of the marketing strategies in the new market. The evaluation also includes an assessment of how the formulated marketing strategies can be profitable for Samsung Electronics and a short recommendation of how the marketing strategies can be improved for continued success. Samsung Group is a transnational conglomerate company of South Korea. It has its headquarters in Samsung Town in Seoul. The company has many supplementary and affiliated business among which most of them are under the brand name of Samsung and it is the largest business conglomerated in South Korea. In 1938, Lee Byung-chul founded the company Samsung. The company has diversified itself into many new directions like textiles, insurances, retail, food processing and securities. In 1960’s the company started its business in electronics industry. Samsung group was been separated into four business groups after Lee Byung-chul died in 1987. In 1983, the company started producing personal computers and in 1988 it started producing semiconductors and telecommunication devices and networks. Samsung was considered to be a producer of low end products that used to be cheap in comparison to the other costly Japanese products. The company was also known to produce reliable and products of high quality which made the company gain lot of popularity among the customers and also in the market. By the end of 1992,

Criminal Justice Problems Essay Example | Topics and Well Written Essays - 500 words

Criminal Justice Problems - Essay Example However, all is not lost yet. . One of the best ways t o exert a crease on such occurrences, is through education. Education helps refine children and their thinking processes. Since they can be moulded easily and brought into a certain fold, imparting education to juveniles is necessary. By doing so, delinquency rates can experience a dip, while also facilitating the rehabilitation of juveniles who have been led on to the wrong path. This paper attempts to explore the justification of juvenile crime and to seek a better mode of addressing the issue, rather than mere punishment as justice. Education can play an important role in helping the juvenile return to normalcy and achieve success, by changing his pattern of thinking, infusing a sense of tolerance and optimism, and by helping them emerge out of a pessimistic and criminal mindset. This can be done by following policies and programmes in schools and juvenile rehabilitation centres, in order to help juveniles overcome their psychological problems, first and then to help them adapt to leading a life of normalcy and success. Next, the interaction between studen

Othello, the Moore of Venice Essay Example | Topics and Well Written Essays - 500 words

Othello, the Moore of Venice - Essay Example He is portrayed to be physically strong and admired by the people who know him. He is considered to be an asset for the government of Venice and he is important for the Duke as well as the other senior members. On the other hand, Roderigo is highlighted to be very weak and is dependent upon others for his decisions. He is rich but is not as strong as Othello by any means. Thus, Othello and Roderigo strike a balance in the play where Othello portrays strength and Roderigo portrays weakness. Othello is a very brave soldier and his suggestions and recommendations are given importance by the senators and the Duke of Venice. He is a man who is loved for his strength and determination. He holds the strong position of the general of the armies of Venice and has authority to promote people. Othello marries the woman he loves, Desdemona secretly. He explains that Desdemona chose to marry him after listening to the story of his achievements and attainments in his life. It is seen that Desdemona loves Othello for what he is and she chooses to stand by him. The accomplishments of Othello are so impressive that when the Duke listens to the story of Othello that he told Desdemona, he is compelled to say, â€Å"I think this tale would win my daughter too.† Thus, the life of Othello displays strength and his character is the most noticeable character of the play. Roderigo is a rich man who lives in Venice. He is a weak man who does not have his own decisions and judgments. He rather relies on deceitful people like Iago for support and help. Roderigo loves Desdemona but does not approach her through the right means. He rather pays Iago to assist him in marrying her. This can be seen as a step that displays his weakness. He cannot express his love for Desdemona by himself and win her love by his qualities. He is disappointed when he learns of the marriage between Othello and Desdemona. Despite of their marriage, he

Computer networks Essay Example | Topics and Well Written Essays - 3500 words

Computer networks - Essay Example Moreover, Cisco devices deliver integration features that will support compatibility and scalability issues with upcoming applications and services. For addressing, network security, again Cisco firewalls are implemented to protect the network from viruses, worms and probes. In summary, Cisco 3845 integrated service router is implemented for exchanging communication from the local area network interface to the WAN interface. The router provides productivity, integration and enhanced features along with Cisco 3845 (ISR) Site-to-Site VPN Support, Cisco 3845 (ISR) Remote Access VPN Support, Cisco 3845 (ISR) Network Admission Control support, Cisco 3845 (ISR) Digital Voice Call support , Cisco Unified Communication Support and Unified Survivable Remote Site Telephony (SRST) support. Moreover, data switches are also acquired from Cisco named as Cisco Catalyst 3750 that provides enhanced features. Moreover, for wireless networks, Cisco Unified Wireless network featuring Cisco Wireless Cont rol System along with Cisco 4400 Series Wireless LAN Controllers are deployed. Furthermore, the wireless network also supports Cisco Clear air Technology. For remote connectivity and scalability, Cisco service mobility engines are installed. For application support, SOAP and XML Support and Context aware Services are available. In addition, for addressing network security, Cisco ASA 5500 Series Adaptive Security Appliances (For Wired Network), AIP-SSM Intrusion Prevention Module and Wireless Intrusion Prevention System (W IPS) (For Wireless Networks) is operational. Fig 1.1 demonstrates the local area network of an organization below: Figure 1.1 (LOCAL AREA NETWORK) Structure and Cabling The current network is constructed on Star topology that is the most widely adopted topology, as it has many benefits when compared to other topologies. By implementing star topology, network engineers can administer and troubleshoot the network more efficiently and effectively. Star topology provid es a one stop monitoring screen that demonstrates activities on the local area network. Likewise, the cost of implementing and managing the local area network is comparatively low, as less resources and low network downtime occurs. Moreover, network security is addressed efficiently, as monitoring of each system or service is carried out

Celebrity Endorsement Essay Example | Topics and Well Written Essays - 1000 words

Celebrity Endorsement - Essay Example Indeed, trademark or brand name is a term that is used to define entities with unique credibility and attraction levels. They are used to drive marketing activities in various jurisdictions due to their influential nature. Companies prefer using strong brands names to endorse their product to improve sales units. The institutions use the trademarks due to the financial implications that arise from such endorsements. In particular, strong trade marks results to high sales that in turn lead to improved financial performance. . Evaluation The journal is selected based on the insightful information that it holds that create awareness on the financial implications that the use of strong trademarks or strong celebrity endorsement earns various corporations. The article evaluates the significance of using strong brand trademarks in executing marketing or product promotion activities. It details the impact of strong trademark or celebrity endorsement that is becoming popular in most settings . The practice is gaining momentum since strong brand identities hold great influence and attraction that compels individuals to associating with their ideals or choices. High profile brands or trademarks are used due to their financial implications. ... Managers assert that use of high profile trademarks in the advertisement packets is conventional and beneficial.Author Biography Lan Luo, Jeanie Han, C. Whan Park. (2008). Dilution and Enhancement of Celebrity Brands through Sequential Movie Releases. Journal of Marketing Research, 47, 6, 1114-1128. Summary The article discusses celebrity branding that has provides information leading to erosion or development of the influential nature of celebrities. Celebrities are influential individuals who can shape a product’s perception and individual’s prospects. Their influential nature can transform the perception of various individuals. However, celebrities can dilute their status and influence negatively if they engage in incredible practices. The dilution of character and credibility through the adoption of unconventional activities may render them in any promotional activity. However, they can use their skills to build a strong brand identity and boost promotional activiti es. They can achieve this through appearance and development of a sequence of movies or promotional activities. Evaluation The article is selected based on the need for stakeholders in the marketing industry to understand the influence of dilution and celebrity brand enhancement on product performance. The information is significant because it ensures that corporations appoint credible celebrities to drive their promotional activities. Dilution and enhancement of celebrity endorsement hold far-reaching effects on product promotion. The variations lead to low product sales or high sales volume depending on the celebrity status. It is recognizable the celebrity endorsement hold immense relations with product brand

The Almond Tree Essay Example for Free

The Almond Tree Essay In the poem The Almond Tree, the poet manages to effectively deal with the subject of death, or in this poem, the death of the poets hopes, by using different techniques such as imagery and symbolism. In The Almond Tree by Jon Stallworthy, the poet is drives to the hospital to see his new born son, and once arrives there, finds out his son has Downs Syndrome, and in the rest of the poem, the poet deals with the death of his hopes, and eventualy learns to accept his son. The poet manages to create an appropriate mood for the death of his hopes by having the first section of the poem be positive, and build up a positive and excited mood. The poet manages to create this postivite mood by imagery. When the poet is describing the traffic lights, he refers to them being green as peppermints, the reference to confectionery makes the reader associate the image with sweet and pleasant things. The poet is so excited that he feels he can change scenes to suit himself, shown when the poet says as if i were the lucky prince in an enchanted wood, this builds up the positive mood because it shows that the poet is very enthusiastic, and so the reader feels that enthusiasm too. The poet is very conscious of himself in the first section shown when he said he was aware of the blood running down the delta of my wrist, and so this shows how excited he is. The verse structure in the first section of the poem is also used as a technique to build up a feeling of excitement, the verses vary between 4-8 lines, and have a next to no structure, which give an impression of the poet being very excited so that hes not concentrating on the structure, and is just getting out all his thoughts as they come to him. The poet also states the hopes that he has for his child, such as let it be a son, a son, because he wants the family name to be carried on. All these techniques used help to develop a feeling of excitement and positivity in the first section, which is used to make the bad news to come an even bigger contrast. The second section of the poem is when the news is delivered that the poets son has Downs Syndrome, and is delievered effectively by first introducing the feeling of uneasiness by using onomatopoeia in the form of harsh words, such as scissored and slicing, and so makes the reader feel as if something bad is going to happen. The way the news is actually delivered is also meant to shock the reader, and it is said as quickly and to the point as possible, using only 4 one syllable words, and 1 two syllable word your son is a mongol. The way the news is delivered is made shocking not only by the way the news is delievered, but because it is such a big contrast to the first section of the poem. The third section describes how the poet feels once hearing this shocking news, and describes the death of his dreams,the poet uses techniques such as imagery to get these points across. He describes the news he recieved as going in clean as a bullet, and subsequently stopping the heart within it, which tells the reader that that to the poet, this news is fatal, and that the bullet left no mark on the skin so the poet showed no outward sign of despair. This reaction shows that the poet is in a state of shock. The poet then states that this was my first death, and by his first death he means the death of his hopes, which was for his son to carry on the family name and growing up to be just like the poet, he backs this point up again by stating never to come ashore into my kingdom speaking my language. The poet becomes displaced from reality, saying I held four walls in the lens of an eye, and this experience shows that the poet can see his dead self, and cannot feel anything any more, which proves that the poets hopes have died. The central idea of the poem is that love can overcome all obstacles, which in this case is the poet learning to love his son, no matter what. The only way that the poet would have been able to accept his son was by letting go of his hopes for his son growing up to be just like him and carrying on the family name, and this is what happens. The whole process is shown in the poem through symbolism, which in this case is the almond tree blooming, the poet describes this process as painful by using harsh words, such as split and blood-dark, and finds that the tree had to go through a painful process in order to become what it is, and he compares this to his own situation, and realises that he has to go through a painful process, which is the death of his dreams, in order to do what he was really meant to do, which was to accept his son.

Influences on Dividend Payout Decisions

Influences on Dividend Payout Decisions CHAPTER ONE INTRODUCTION The intricacies of Dividends and Dividend policy can leave even the most seasoned financial professional feeling a little uneasy. While conventional wisdom suggests that paying dividends affects both firms value and shareholder wealth to retain earnings to explore growth opportunities, much debate still surrounds this dynamic discipline; especially when it comes to how dividend decisions can lead to value maximization Kent (2003). Dividend policy is an important component of the corporate financial management policy. It is a policy used by the firm to decide as to how much cash it should reinvest in its business through expansion or share repurchases and how much to pay out to its shareholders in dividends. Dividend is a payment or return made by the firm to the shareholders, (owners of the company) out of its earnings in the form of cash. For a long time, the subject of corporate dividend policy has captivated the interests of many academicians and researchers, resulting in the emer gence of a number of theoretical explanations for dividend policy. For the investors, dividend serve as an important indicator of the strength and future prosperity of the business, thereby companies try to maintain a stable dividend because if they reduce their dividend payments, investors may suspect that the company is facing a cash flow problem. Investors prefer steady growth of dividends every year and are reluctant to investment to companies with fluctuating dividend policy. Over time, there has been a substantial increase in the number of factors identified in the literature as being important to be considered in making dividend decisions. Thus, extensive studies have been done to find out various factors affecting dividend payout ratio of a firm. However, there is no single explanation that can capture the puzzling reality of corporate dividend behavior. Ocean deep judgment is involved by decision makers to resolve this issue of dividend behavior. The decision of companies t o retain or pay out the earnings in form of dividends is important for the maximization of the value of the firm (Oyejide, 1976). Therefore, companies should set a constructive target dividend payout ratio, where it pays dividends to its shareholders and at the same time maintains sufficient retained earnings as to avoid having raise funds by borrowing money. A tough challenge was faced by financial practitioners and many academics, when Miller and Modigliani (MM) (1961) came with a proposition that, given perfect capital markets, the dividend decision does not affect the firm value and is, therefore, irrelevant. This proposition was greeted with surprise because at that time it was universally acknowledged by both theorists and corporate managers that the firm can enhance its business value by providing for a more generous dividend policy and that a properly managed dividend policy had an impact on share prices and shareholder wealth. Since the M M study, many researchers have relaxed the assumption of perfect capital markets and stated theories about how managers should formulate dividend policy decisions. Problem Statement Dividend policy has attracted a substantial amount of research by many researchers and theorists, who have provided theoretical as well as empirical observations, into the dividend puzzle (Black, 1976). Even though researchers and theorists have extended their studies in context to dividend decisions, the issue as to why corporations distribute a portion of their earnings as dividends is not yet resolved. The issue of dividend policy has stimulated much debate among financial analysts since Lintners (1956) seminal work. He measured major changes in earnings as the key determinant of the companies dividend decisions. There are many factors that affect dividend decisions of a firm as it is very difficult to lay down an optimum dividend policy which would maximize the long-run wealth of the shareholders resulting into increase or decrease of the firms value, but the primary indicator of the firms capacity to pay dividends has been Profits. Miller and Modigliani (1961), DeAngelo and DeAngelo (2006) gave their proposition on the dividend irrelevance, but the argument made by them was on assumptions that werent practical and in fact, the dividend payout decision does affect the shareholders value. The study focuses on identifying various determinants of dividend payout and whether these factors influence the dividend payout decision. Research Objective: There are many theories in the corporate finance literature addressing the dividend issue. The purpose of study is to understand the factors influencing the dividend decision of companies. The specific objectives of this study are: To analyze the financials of the company to draw a framework of factors such as Retained earnings, Age of the company, Debt to Equity, Cash, Net income, Earnings per share etc. responsible for dividend declaration. To understand the criticality of a companys profitability (in terms of Earnings per share) component in declaration of dividends. To measure each factor individually on how it affects the dividend decision. Research Questions: Q1. What is the relation between dividend payout and firms debt? Q2. What is the relation between dividend payout and Profitability? Q3. What is the relation between dividend payout and liquidity? Q4. What is the relation between dividend payout and Retained Earnings? Q5. What is the relation between dividend payout and Net Income? Scope of the Study: This study investigates areas of concern that are extensive thereby due to limitation of time; the scope of research will be limited as the period of study is only three years 2006-2008. The study is focused only on firms trading on NYSE and has considered only those firms who pay dividends. Organization of the paper: The remaining chapters will be organized as follows: Chapter Two: Literature Review This chapter discusses the Determinants of Dividend payout and the theories behind the research questions in context to the Dividend policy. Chapter Three: Research Methodology The chosen research design, data collection and statistical tests for analysis are described in the chapter. Chapter four: Data Analysis and Findings: To address the research questions, results obtained from the regression analysis will be presented and discussed. Chapter five: Recommendations and Conclusion. This chapter provides recommendations for the future research and a conclusion for all this research. CHAPTER TWO LITERATURE REVIEW Dividend remains one of the greatest enigmas of modern finance. Corporate dividend policy is an important decision area in the field of financial management hence there is an extensive literature devoted to the subject. Dividends are defined as the distribution of earnings (present or past) in real assets among the shareholders of the firm in proportion to their ownership. Dividend policy refers to managements long-term decision on how to utilize cash flows from business activities-that is, how much to plow back into the business, and how much to return to shareholders (Khan and Jain, 2005). Lintner (1956) conducted a notable study on dividend distributions, his was the first empirical study of dividend policy through his interview with managers of 28 selected companies, he stated that most companies have clear cut target payout ratios and that managers concern themselves with change in the existing dividend payout rather than the amount of the newly established payout. He also states that, Dividend policy is set first and other policies are then adjusted and the market reacts positively to dividend increase announcements and negatively to announcements of dividend decreases. He measured major changes in earnings as the key determinant of the companies dividend decisions. Lintners study was expanded by Farrelly et al. (1988), who, mailed a questionnaire to 562 firms listed on the New York Stock Exchange and concluded that managers accept dividend policy to be relevant and important. Lintners view was also supported by the study results of Fama and Babiak (1968) and Fama (1974) who suggested that managers prefer a stable dividend policy, and are hesitant to increase dividends to a level that cannot be supported. Fama and Babiaks (1968) study also concludes that Net income appears to explain the dividend change decision better than a cash flow measure. The study by Adaoglu (2000), Amidu and Abor (2006) and Belans et al (2007) stated that net income shows positive and significant association with the dividend payout, therefore indicating that, the firms with the positive earnings pay more dividends. Merton Miller and Franco Modigliani (1961) made a proposition that the value of a firm is not affected by its dividend policy. Dividend policy is a way of dividing up operating cash flows among investors or just a financial decision. Financial theorists Martin, Petty, Keown, and Scott, 1991 supported this theory of irrelevance. Miller and Modiglianis conclusion on the irrelevance of dividend policy presented a tough challenge to the conventional wisdom of time up to that point, it was universally acknowledged by both theorists and corporate managers that the firm can enhance its business value by providing for a more generous dividend policy as investors seem to prefer dividends over capital gains (JM Samuels, FM.Wilkes and R.E Brayshaw). Benartzi et al. (1997) conducted an extensive study and concluded that Lintners model of dividends remains the finest description of the dividend setting process available. Baker et al. (2001) conducted a survey on 630 NASDAQ-listed firms and analyzed the responses from 188 CFOs about the importance of 22 different factors that influence their dividend policy, they found that the dividend decisions made by managers were consistent with Lintners (1956) survey results and model. Their results also suggest that managers pay particular attention to the dividend policy of the firm because the dividend decision can affect firm value and, in turn, the wealth of stockholders, thus dividend policy requires serious attention by the management. E.F Fama and K.R French (2001) investigated the characteristics of companies paying dividends and concluded that the top most characteristics that affect the decision to pay dividends are Firm size, Profitability, and Investment opportunities. They studied dividend payment in the United States and found that the proportion of dividend payers declined sharply from 66% in 1978 to 20.8% in 1999, and that only about a fifth of public companies paid dividends. Growth companies such as Microsoft, Cisco and Sun Microsystems were found to be non-dividend payers. They also explained that the probability that a firm would pay dividends was positively related to profitability and size and negatively related to growth. Their research concluded that larger firms are more profitable and are more likely to pay dividends, than firms with more investment opportunities. The relationship between firm size and dividend policy was studied by Jennifer J. Gaver and Kenneth M. Gaver (1993). They suggested t hat A firms dividend yield is inversely related to the extent of its growth opportunities. The inference here is that as cash flow increases, the coefficient of dividend decreases, indicating that smaller firms that have greater investment opportunities thus they tend not to make dividend payment while larger firms tend to have proactive dividends policy. Ho, H. (2003) undertook a comparative study of dividend policies in Japan and Australia. Their study revealed that dividend policies in Australia and Japan are affected by different financial factors. Dividend policies are affected positively by size in Australia and liquidity in Japan. Naceur et al (2006) examined the dividend policy of 48 firms listed on the Tunisian Stock Exchange during the period 1996-2002. His research indicated that highly profitable firms with more stable earnings could afford larger free cash flows and thus paid larger dividends. Li and Lie (2006) reported that large and profitable firms are more likely to raise their dividends if the past dividend yield, debt ratio, cash ratio are low. A study was conducted by Norhayati Mohamed, Wee Shu Hui, Mormah Hj.Omar, and Rashidah Abdul Rahman on Malaysian companies over a 3 year period from 2003-2005. The sample was taken from the top 200 companies listed on the main board of Bursa Malaysia based on market capitaliza tion as at 31December 2005. Their study concluded that bigger firms pay higher dividends. or the purpose of finding out how companies arrive at their dividend decisions, many researchers and theorists have proposed several dividend theories. Gordon and Walter (1963) presented the Bird in Hand theory which suggested that to minimize risk the investors always prefer cash in hand rather than future promise of capital gain. This theory asserts that investors value dividends and high payout firms. As said by John D. Rockefeller (an American industrialist) The one thing that gives me contentment is to see my dividend coming in. For companies to communicate financial well-being and shareholder value the easiest way is to say the dividend check is in the mail. The bird-in-hand theory (a pre-Miller-Modigliani theory) asserts that dividends are valued differently to capital gains in a world of information asymmetry where due to uncertainty of future cash flow, investors will often tend to prefer dividends to retained earnings. As a result the value of the firm would be increased as a higher payout ratio will reduce the required rate of return (see, for example Gordon, 1959). This argument has not received any strong empirical support. Dividends, paid by companies to shareholders from earnings, serve as an important indicator of the strength and future prosperity of the business. This explanation is known as signaling hypothesis. Signaling is an example factor for the relevance of dividends to the value of the firm. It is based on the idea of information asymmetry between managers and investors, where managers have private information about the firm that is not available to the outsiders. This theory is supported by models put forward by Miller and Rock (1985), Bhattacharya (1979), John and Williams (1985). They stated that dividends can be used as a signaling device to influence share price. The share price reacts favorably when an announcement of dividend increase is made. Few researchers found limited support for the signaling hypothesis (see Gonedes, 1978, Watts, 1973) and there are other researchers, who supported the hypothesis, for example, in Michaely, Nissim and Ziv (2001), Pettit (1972) and Bali (2003). The tax-preference theory assumes that the market valuation of a firms stocks is increased when the dividend payout ratios is low which in turn lowers the required rate of return. Because of the relative tax liability of dividends compared to capital gains, investors need a large amount of before-tax risk adjusted return on stocks with higher dividend yields (Brennan, 1970). On one side studies by Lichtenberger and Ramaswamy (1979), Poterba and Summers, (1984), and Barclay (1987) have presented empirical evidence in support of the tax effect argument and on the other side Black and Scholes (1974), Miller and Scholes (1982), and Morgan and Thomas (1998) have either opposed such findings or provided completely different explanations. The study by Masulis and Trueman (1988) model dividend payments in form of cash as products of deferred dividend costs. Their model predicts that investors with differing tax liabilities will not be uniform in their ideal firm dividend policy. As the tax l iability on dividends increases (decreases), the dividend payment decreases (increases) while earnings reinvestment increases (decreases). According to Farrar and Selwyn (1967), in a partial equilibrium framework, individual investors choose the amount of personal and corporate leverage and also whether to receive corporate distributions as dividends or capital gains. Barclay (1987) has presented empirical evidence I support of the tax effect argument. Others, including Black and Scholes (1982), have opposed such findings or provided different explanations. Farrar and Selwyns model (1967) made an assumption that investors tend to increase their after tax income to the maximum. According to this model corporate earnings should be distributed by share repurchase rather than the use of dividends. Brennan (1970) has extended Farrar and Selwyns model into a general equilibrium framework. Under this, the expected usefulness of wealth as a system of barter is maximized. Despite being more robust both the models are similar as regards to their predictions. According to Auerbachs (1979) discrete-time, infinite-horizon model, the wealth of shareholders is maximized by the shareholders themselves and not by firm market value. If there does, infact, exist a difference between capital gains and dividends tax; firm market value maximization is no longer determined by wealth maximization. He states that the continued undervaluation of corporate capital leads to dividend distributions. The clientele effects hypothesis is another related theory. According to this theory the investors may be attracted to the types of stocks that fall in with their consumption/savings preferences. That is, investors (or clienteles) in high tax brackets may prefer non-dividend or low-dividend paying stocks if dividend income is taxed at a higher rate than capital gains. Also, certain clienteles may be created with the presence of transaction costs. There are several empirical studies on the clientele effects hypothesis but the findings are mixed. Studies by Pettit (1977), Scholz (1992), and Dhaliwal, Erickson and Trezevant (1999) presented evidence consistent with the existence of clientele effects hypothesis whereas studies by Lewellen et al. (1978), Richardson, Sefcik and Thomason (1986), Abrutyn and Turner (1990), found weak or contrary evidence. There is an assumption that the managers do not always take steps which would lead to maximizing an investors wealth. This gives rise to another favorable argument for hefty dividend payouts which shifts the reinvestment decision back on the owners. The main hitch would be the agency conflict (conflict between the principal and the agent) arising as a result of separate ownership and control. Therefore, a manager is expected to move the surplus funds from the high retained earnings into projects which are not feasible. This would be mainly due to his ill intention or his in competency. Thus, generous dividend payouts increase a firms value as it reduces the managements access to free cash flows and hence, controlling the problem of over investment. There are many more agency theories explaining how dividends can increase the value of a firm. One of them was by Easterbrook (1984); he proposed that dividend payments reduce agency problems in contrast to the transaction cost theory which is of the view that dividend payments reduce the value as it forces to raise costly finances from outside sources. His idea is that if the dividends are not paid, there is a problem of collective action that tends to lead to hap-hazard management of the firm. So, dividend payouts and raising external finance would attract auditory and regulatory measures by financial intermediaries like investment banks, respective stock exchange regulators and the potential investors as well. All this monitoring would lead to considerable reduction of agency costs and appreciate the market value of t he firm. Moreover, as defined by Jenson and Meckling (1976), Agency costs=monitoring costs+ bonding, costs+ residual loss i.e. sum of agency cost of equity and agency cost of debt. Hence, Easterbrook (1984) noted that dividend payments and raising new debt and its contract negotiations would reduce potential for wealth transfer. The realization for potential agency costs linked with separation of management and shareholders is not new. Adam Smith (1937) proposed that management of earlier companies is wayward. This problem was highly witnessed during at the time of British East Indian Companies and tracking managers was a failure due to inefficiencies and high costs of shareholder monitoring (Kindleberger, 1984). Scott (1912) and Carlos (1922) differ with this view point. They agree that although some fraud existed in the corporations, many of the activities of the managers were in line with those of the shareholders interests. An opportune and intelligent manager should always invest the surplus cash available into those opportunities which are well researched to be in the best interest of the shareholders. Berle and Means (1932) was the first to discover the insufficient utilization of funds which are surplus after other investment opportunities taken by the management. This thought was further promoted by Jensens (1986) free cash flow hypothesis. This hypothesis combined market information asymmetries with the agency theory. The surplus funds left after all the valuable projects are largely responsible for creation of the conflict of interest between the management and the shareholders. Payment of dividends and interest on other debt instruments reduce the cash flow with the management to invest in marginal net present value projects and for other perquisite consumptions. Therefore, the dividend theory is better explained by the combination of both the agency and the signaling theory rather than by any o ne of these alone. On the other hand, the free cash flow hypothesis rationalizes the corporate takeover frenzy of the 1980s Myers (1987 and 1990) rather than providing a clear and comprehensive dividend policy. The study by Baker et al. (2007) reports, that firms paying dividend in Canada are significantly larger and more profitable, having greater cash flows, ownership structure and some growth opportunities. The cash flow hypothesis proposes that insiders to a firm have more information about future cash flow than the outsiders, and they have incentivized motives to leak this to outsiders. Lang and Litzenberger (1989) check the cash flow signaling and free cash flow explanations of the effect of dividend declarations on the stock prices. This difference between permanent and temporary changes is also explored in Brook, Charlton, and Hendershott (1998). However, this study is based on the hypothesis that dividend changes contain cash flow information rather than information about earnings. This is the cash flow signaling hypothesis proposing that dividend changes signal expected cash flows changes. The dividend decisions are affected by a number of factors; many researchers have contributed in determining which determinant of dividend payout is the most significant in contributing to dividend decisions. It is said that the primary indicator of the firms capacity to pay dividends has been Profits. According to Lintner (1956) the dividend payment pattern of a firm is influenced by the current year earnings and previous year dividends. Pruitt and Gitmans (1991) survey of financial managers of 1000 largest U.S companies about the interplay among the investment and dividend decisions in their Firms reported that, current and past year profits are essential factors influencing dividend payments. The conclusion derived from Baker and Powells (2000) survey of NYSE-listed firms is that the major determinant is the anticipated level of future earnings and continuity of past dividends. The study of Aivazian, Booth, and Cleary (2003) concludes that profitability and return on equity positively correlate with the size of the dividend payout ratio. The study by Lv Chang-jiang and Wang Ke-min (1999) on 316 listed companies in China that paid cash dividends during 1997 and 1998 by using modified Lintner dividend model, suggested that the dividend payout ratio is due to the firms current earning level. Other researchers like Chen Guo-Hui and Zhao Chun-guang (2000), Liu Shu-lian and Hu Yan-hong (2003) also concluded their research on the above stated understanding about dividend policy of listed companies in China. A survey done by Baker, Farrelly, and Edelman (1985) and Farrelly, Baker, and Edelman (1986) on 562 New York Stock Exchange (NYSE) firms with normal kinds of dividend polices in 1983 suggested that the major determinants of dividend payments were the anticipated level of future earnings and the pattern of past dividends. DeAngelo et al. (2004) findings suggest that earnings do have some impact on dividend payment. He stated that the high/increasing dividend concentration may be the result of high/increasing earnings concentration. Goergen et al. (2005) study on 221 German firms shows that net earnings were the key determinants of dividend changes. Baker and Smith (2006) examined 309 sample firms exhibiting behavior consistent with a residual dividend policy and their matched counterparts to understand how they set their dividend policies. Their study showed that for the matched firms, the pattern of past dividends and desire to maintain a long-term dividend payout ratio elicit the highest level of agreement from respondents. The study by Ferris et al. (2006) found mixed results for the relation between a firms earnings and its ability to pay dividends. Kao and Wu (1994) used a time series regression analysis of 454 firms over the period of 1965 to1986, and showed that there was a positive relationshi p between unexpected dividends and earnings. Carroll (1995) used quarterly data of 854 firms over the period of 1975 to 1984, and examined whether quarterly dividend changes predicted future earnings. He found a significant positive relationship. Liquidity is also an important determinant of dividend payouts. A poor liquidity position would generate fewer dividends due to shortage of cash. Alli et.al (1993), reveal that dividend payments depend more on cash flows, which reflect the companys ability to pay dividends, than on current earnings, which are less heavily influenced by accounting practices. They claim current earnings do no really reflect the firms ability to pay dividends. A firm without the cash flow back up cannot choose to have a high dividend payout as it will ultimately have to either reduce its investment plans or turn to investors for additional debt. The study by Brook, Charlton and Hendershott (1998) states that, Firms expecting large permanent cash flow increases tend to increase their dividend. Managers do not increase dividends until they are positive that sufficient cash will flow in to pay them (Brealey-Myers-2002). Myers and Bacons (2001) study shows a negative relationship between the liquid ratio and dividend payout. For companies to enable them to enhance their dividend paying capacity, and thus, to generate higher dividend paying capacity, it is necessary to retain their earnings to finance investment in fixed assets. The study by Belans et al (2007) states that the relationship between the firms liquidity and dividend is positive which explains that firms with more market liquidity pay more dividends. Reddy (2006), Amidu and Abor (2006) find opposite evidence. Lintner (1956) posited that the level of retained earnings is a dividend decision by- product. Adaoglu (2000) study shows that the firms listed on Istanbul Stock Exchange follow unstable cash dividend policy and the main factor for determining the amount of dividend is earning of the firms. The same conclusion was drawn by Omet (2004) in case of firms listed on Amman Securities Market and he further states that the tax imposition on dividend does not have the significant impact on the dividend behavior of the listed firms. The study by Mick and Bacon (2003) concludes that future earnings are the most influential variable and that the past dividend patterns as well as current and expected levels are empirically relevant in explaining the dividend decision. Empirical support for Lintners findings, that dividends were indeed a function of current and past profit levels and were negatively correlated with the change in sales was found by Darling (1957), Fama and Babiak (1968). Benchman a nd Raaballe (2007) discovered that the propensity to pay out dividends is positively correlated to retained earnings. Also, the study by Denis and Osobov (2006) states that retained earnings are a significant dividend characteristic for non- US firms including UK, German, and French firms. One of the motives for dividend policy decision is maintaining a moderate share price as poor stock price performance mostly conveys negative information about firms reputation. An empirical research took by Zhao Chun-guang and Zhang Xue-li et al (2001) on all A shares listed companies listed in Shenzhen and Shanghai Stock Exchange, states that the more cash dividends is paid when the stock prices are high. Chen Guo-Hui and Zhao Chun-guang (2000) undertook a research on all A shares listed before 1996 and paid dividend into share capital in 1997 as their sampling, and employed single-factor analysis, multifactor regression analysis to analyze the data. Their research showed a positive stock price reaction to the cash dividend, stock dividend policy. Myers and Bacon (2001) discussed that the debt to equity ratio was positively correlated to the dividend yield. Therefore firms with relatively more investment opportunities would tend to be more geared and vice versa (Ross, 2000). The study by Hu and Liu, (2005) declares that there is a positive correlation between the cash dividend the companies pay and their current earnings, and a inverse relationship between the debt to total assets and dividends. Green et al. (1993) questioned the irrelevance argument and investigated the relationship between the dividends and investment and financing decisions .Their study showed that dividend payout levels are decided along with investment and financing decisions. The study results however do not support the views of Miller and Modigliani (1961). Partington (1983) declared that firms motives for paying dividends and extent to which dividends are decided are independent of investment policy. The study by Higgins (1981) declares a direct link between growths and financing needs, rapidly growing firms have external financing needs because working capital needs normally exceed the incremental cash flows from new sales. Higgins (1972) suggests that payout ratios are negatively related to firms need top fund finance growth opportunities. Other researchers like Rozeff (1982), Lloyd et al. (1985) and Collins et al. (1996) all show significantly negative relationship between historical sales growth and dividend payout whereas D, Souza (1999) however shows a positive but insignificant relationship in the case of growth and negative but insignificant relationship in case of market to book value. Jenson and Meckling (1976) find a strong relationship between dividends and investment opportunities. They explain, in some circumstances where firms have relative uptight disposable cash flow and a number of investment opportunities have, the shareholders are ready to accept low dividend payout ratio. From the investors point of view, the dividend payments represent definite evidence of a companys worth. A company that expects sufficient future cash flows, large enough to meet debt obligations and dividend payments, will increase dividend payout. Howe (1998) believed that the actions of the managers might convey information to the investors outside as they are more informed about the future prospects of their firms than the market. Reddy (2002) studied dividend behavior and expressed his views on the observed behavior with the help of signaling hypothesis. The undervalued firms (assessed by the price Influences on Dividend Payout Decisions Influences on Dividend Payout Decisions CHAPTER ONE INTRODUCTION The intricacies of Dividends and Dividend policy can leave even the most seasoned financial professional feeling a little uneasy. While conventional wisdom suggests that paying dividends affects both firms value and shareholder wealth to retain earnings to explore growth opportunities, much debate still surrounds this dynamic discipline; especially when it comes to how dividend decisions can lead to value maximization Kent (2003). Dividend policy is an important component of the corporate financial management policy. It is a policy used by the firm to decide as to how much cash it should reinvest in its business through expansion or share repurchases and how much to pay out to its shareholders in dividends. Dividend is a payment or return made by the firm to the shareholders, (owners of the company) out of its earnings in the form of cash. For a long time, the subject of corporate dividend policy has captivated the interests of many academicians and researchers, resulting in the emer gence of a number of theoretical explanations for dividend policy. For the investors, dividend serve as an important indicator of the strength and future prosperity of the business, thereby companies try to maintain a stable dividend because if they reduce their dividend payments, investors may suspect that the company is facing a cash flow problem. Investors prefer steady growth of dividends every year and are reluctant to investment to companies with fluctuating dividend policy. Over time, there has been a substantial increase in the number of factors identified in the literature as being important to be considered in making dividend decisions. Thus, extensive studies have been done to find out various factors affecting dividend payout ratio of a firm. However, there is no single explanation that can capture the puzzling reality of corporate dividend behavior. Ocean deep judgment is involved by decision makers to resolve this issue of dividend behavior. The decision of companies t o retain or pay out the earnings in form of dividends is important for the maximization of the value of the firm (Oyejide, 1976). Therefore, companies should set a constructive target dividend payout ratio, where it pays dividends to its shareholders and at the same time maintains sufficient retained earnings as to avoid having raise funds by borrowing money. A tough challenge was faced by financial practitioners and many academics, when Miller and Modigliani (MM) (1961) came with a proposition that, given perfect capital markets, the dividend decision does not affect the firm value and is, therefore, irrelevant. This proposition was greeted with surprise because at that time it was universally acknowledged by both theorists and corporate managers that the firm can enhance its business value by providing for a more generous dividend policy and that a properly managed dividend policy had an impact on share prices and shareholder wealth. Since the M M study, many researchers have relaxed the assumption of perfect capital markets and stated theories about how managers should formulate dividend policy decisions. Problem Statement Dividend policy has attracted a substantial amount of research by many researchers and theorists, who have provided theoretical as well as empirical observations, into the dividend puzzle (Black, 1976). Even though researchers and theorists have extended their studies in context to dividend decisions, the issue as to why corporations distribute a portion of their earnings as dividends is not yet resolved. The issue of dividend policy has stimulated much debate among financial analysts since Lintners (1956) seminal work. He measured major changes in earnings as the key determinant of the companies dividend decisions. There are many factors that affect dividend decisions of a firm as it is very difficult to lay down an optimum dividend policy which would maximize the long-run wealth of the shareholders resulting into increase or decrease of the firms value, but the primary indicator of the firms capacity to pay dividends has been Profits. Miller and Modigliani (1961), DeAngelo and DeAngelo (2006) gave their proposition on the dividend irrelevance, but the argument made by them was on assumptions that werent practical and in fact, the dividend payout decision does affect the shareholders value. The study focuses on identifying various determinants of dividend payout and whether these factors influence the dividend payout decision. Research Objective: There are many theories in the corporate finance literature addressing the dividend issue. The purpose of study is to understand the factors influencing the dividend decision of companies. The specific objectives of this study are: To analyze the financials of the company to draw a framework of factors such as Retained earnings, Age of the company, Debt to Equity, Cash, Net income, Earnings per share etc. responsible for dividend declaration. To understand the criticality of a companys profitability (in terms of Earnings per share) component in declaration of dividends. To measure each factor individually on how it affects the dividend decision. Research Questions: Q1. What is the relation between dividend payout and firms debt? Q2. What is the relation between dividend payout and Profitability? Q3. What is the relation between dividend payout and liquidity? Q4. What is the relation between dividend payout and Retained Earnings? Q5. What is the relation between dividend payout and Net Income? Scope of the Study: This study investigates areas of concern that are extensive thereby due to limitation of time; the scope of research will be limited as the period of study is only three years 2006-2008. The study is focused only on firms trading on NYSE and has considered only those firms who pay dividends. Organization of the paper: The remaining chapters will be organized as follows: Chapter Two: Literature Review This chapter discusses the Determinants of Dividend payout and the theories behind the research questions in context to the Dividend policy. Chapter Three: Research Methodology The chosen research design, data collection and statistical tests for analysis are described in the chapter. Chapter four: Data Analysis and Findings: To address the research questions, results obtained from the regression analysis will be presented and discussed. Chapter five: Recommendations and Conclusion. This chapter provides recommendations for the future research and a conclusion for all this research. CHAPTER TWO LITERATURE REVIEW Dividend remains one of the greatest enigmas of modern finance. Corporate dividend policy is an important decision area in the field of financial management hence there is an extensive literature devoted to the subject. Dividends are defined as the distribution of earnings (present or past) in real assets among the shareholders of the firm in proportion to their ownership. Dividend policy refers to managements long-term decision on how to utilize cash flows from business activities-that is, how much to plow back into the business, and how much to return to shareholders (Khan and Jain, 2005). Lintner (1956) conducted a notable study on dividend distributions, his was the first empirical study of dividend policy through his interview with managers of 28 selected companies, he stated that most companies have clear cut target payout ratios and that managers concern themselves with change in the existing dividend payout rather than the amount of the newly established payout. He also states that, Dividend policy is set first and other policies are then adjusted and the market reacts positively to dividend increase announcements and negatively to announcements of dividend decreases. He measured major changes in earnings as the key determinant of the companies dividend decisions. Lintners study was expanded by Farrelly et al. (1988), who, mailed a questionnaire to 562 firms listed on the New York Stock Exchange and concluded that managers accept dividend policy to be relevant and important. Lintners view was also supported by the study results of Fama and Babiak (1968) and Fama (1974) who suggested that managers prefer a stable dividend policy, and are hesitant to increase dividends to a level that cannot be supported. Fama and Babiaks (1968) study also concludes that Net income appears to explain the dividend change decision better than a cash flow measure. The study by Adaoglu (2000), Amidu and Abor (2006) and Belans et al (2007) stated that net income shows positive and significant association with the dividend payout, therefore indicating that, the firms with the positive earnings pay more dividends. Merton Miller and Franco Modigliani (1961) made a proposition that the value of a firm is not affected by its dividend policy. Dividend policy is a way of dividing up operating cash flows among investors or just a financial decision. Financial theorists Martin, Petty, Keown, and Scott, 1991 supported this theory of irrelevance. Miller and Modiglianis conclusion on the irrelevance of dividend policy presented a tough challenge to the conventional wisdom of time up to that point, it was universally acknowledged by both theorists and corporate managers that the firm can enhance its business value by providing for a more generous dividend policy as investors seem to prefer dividends over capital gains (JM Samuels, FM.Wilkes and R.E Brayshaw). Benartzi et al. (1997) conducted an extensive study and concluded that Lintners model of dividends remains the finest description of the dividend setting process available. Baker et al. (2001) conducted a survey on 630 NASDAQ-listed firms and analyzed the responses from 188 CFOs about the importance of 22 different factors that influence their dividend policy, they found that the dividend decisions made by managers were consistent with Lintners (1956) survey results and model. Their results also suggest that managers pay particular attention to the dividend policy of the firm because the dividend decision can affect firm value and, in turn, the wealth of stockholders, thus dividend policy requires serious attention by the management. E.F Fama and K.R French (2001) investigated the characteristics of companies paying dividends and concluded that the top most characteristics that affect the decision to pay dividends are Firm size, Profitability, and Investment opportunities. They studied dividend payment in the United States and found that the proportion of dividend payers declined sharply from 66% in 1978 to 20.8% in 1999, and that only about a fifth of public companies paid dividends. Growth companies such as Microsoft, Cisco and Sun Microsystems were found to be non-dividend payers. They also explained that the probability that a firm would pay dividends was positively related to profitability and size and negatively related to growth. Their research concluded that larger firms are more profitable and are more likely to pay dividends, than firms with more investment opportunities. The relationship between firm size and dividend policy was studied by Jennifer J. Gaver and Kenneth M. Gaver (1993). They suggested t hat A firms dividend yield is inversely related to the extent of its growth opportunities. The inference here is that as cash flow increases, the coefficient of dividend decreases, indicating that smaller firms that have greater investment opportunities thus they tend not to make dividend payment while larger firms tend to have proactive dividends policy. Ho, H. (2003) undertook a comparative study of dividend policies in Japan and Australia. Their study revealed that dividend policies in Australia and Japan are affected by different financial factors. Dividend policies are affected positively by size in Australia and liquidity in Japan. Naceur et al (2006) examined the dividend policy of 48 firms listed on the Tunisian Stock Exchange during the period 1996-2002. His research indicated that highly profitable firms with more stable earnings could afford larger free cash flows and thus paid larger dividends. Li and Lie (2006) reported that large and profitable firms are more likely to raise their dividends if the past dividend yield, debt ratio, cash ratio are low. A study was conducted by Norhayati Mohamed, Wee Shu Hui, Mormah Hj.Omar, and Rashidah Abdul Rahman on Malaysian companies over a 3 year period from 2003-2005. The sample was taken from the top 200 companies listed on the main board of Bursa Malaysia based on market capitaliza tion as at 31December 2005. Their study concluded that bigger firms pay higher dividends. or the purpose of finding out how companies arrive at their dividend decisions, many researchers and theorists have proposed several dividend theories. Gordon and Walter (1963) presented the Bird in Hand theory which suggested that to minimize risk the investors always prefer cash in hand rather than future promise of capital gain. This theory asserts that investors value dividends and high payout firms. As said by John D. Rockefeller (an American industrialist) The one thing that gives me contentment is to see my dividend coming in. For companies to communicate financial well-being and shareholder value the easiest way is to say the dividend check is in the mail. The bird-in-hand theory (a pre-Miller-Modigliani theory) asserts that dividends are valued differently to capital gains in a world of information asymmetry where due to uncertainty of future cash flow, investors will often tend to prefer dividends to retained earnings. As a result the value of the firm would be increased as a higher payout ratio will reduce the required rate of return (see, for example Gordon, 1959). This argument has not received any strong empirical support. Dividends, paid by companies to shareholders from earnings, serve as an important indicator of the strength and future prosperity of the business. This explanation is known as signaling hypothesis. Signaling is an example factor for the relevance of dividends to the value of the firm. It is based on the idea of information asymmetry between managers and investors, where managers have private information about the firm that is not available to the outsiders. This theory is supported by models put forward by Miller and Rock (1985), Bhattacharya (1979), John and Williams (1985). They stated that dividends can be used as a signaling device to influence share price. The share price reacts favorably when an announcement of dividend increase is made. Few researchers found limited support for the signaling hypothesis (see Gonedes, 1978, Watts, 1973) and there are other researchers, who supported the hypothesis, for example, in Michaely, Nissim and Ziv (2001), Pettit (1972) and Bali (2003). The tax-preference theory assumes that the market valuation of a firms stocks is increased when the dividend payout ratios is low which in turn lowers the required rate of return. Because of the relative tax liability of dividends compared to capital gains, investors need a large amount of before-tax risk adjusted return on stocks with higher dividend yields (Brennan, 1970). On one side studies by Lichtenberger and Ramaswamy (1979), Poterba and Summers, (1984), and Barclay (1987) have presented empirical evidence in support of the tax effect argument and on the other side Black and Scholes (1974), Miller and Scholes (1982), and Morgan and Thomas (1998) have either opposed such findings or provided completely different explanations. The study by Masulis and Trueman (1988) model dividend payments in form of cash as products of deferred dividend costs. Their model predicts that investors with differing tax liabilities will not be uniform in their ideal firm dividend policy. As the tax l iability on dividends increases (decreases), the dividend payment decreases (increases) while earnings reinvestment increases (decreases). According to Farrar and Selwyn (1967), in a partial equilibrium framework, individual investors choose the amount of personal and corporate leverage and also whether to receive corporate distributions as dividends or capital gains. Barclay (1987) has presented empirical evidence I support of the tax effect argument. Others, including Black and Scholes (1982), have opposed such findings or provided different explanations. Farrar and Selwyns model (1967) made an assumption that investors tend to increase their after tax income to the maximum. According to this model corporate earnings should be distributed by share repurchase rather than the use of dividends. Brennan (1970) has extended Farrar and Selwyns model into a general equilibrium framework. Under this, the expected usefulness of wealth as a system of barter is maximized. Despite being more robust both the models are similar as regards to their predictions. According to Auerbachs (1979) discrete-time, infinite-horizon model, the wealth of shareholders is maximized by the shareholders themselves and not by firm market value. If there does, infact, exist a difference between capital gains and dividends tax; firm market value maximization is no longer determined by wealth maximization. He states that the continued undervaluation of corporate capital leads to dividend distributions. The clientele effects hypothesis is another related theory. According to this theory the investors may be attracted to the types of stocks that fall in with their consumption/savings preferences. That is, investors (or clienteles) in high tax brackets may prefer non-dividend or low-dividend paying stocks if dividend income is taxed at a higher rate than capital gains. Also, certain clienteles may be created with the presence of transaction costs. There are several empirical studies on the clientele effects hypothesis but the findings are mixed. Studies by Pettit (1977), Scholz (1992), and Dhaliwal, Erickson and Trezevant (1999) presented evidence consistent with the existence of clientele effects hypothesis whereas studies by Lewellen et al. (1978), Richardson, Sefcik and Thomason (1986), Abrutyn and Turner (1990), found weak or contrary evidence. There is an assumption that the managers do not always take steps which would lead to maximizing an investors wealth. This gives rise to another favorable argument for hefty dividend payouts which shifts the reinvestment decision back on the owners. The main hitch would be the agency conflict (conflict between the principal and the agent) arising as a result of separate ownership and control. Therefore, a manager is expected to move the surplus funds from the high retained earnings into projects which are not feasible. This would be mainly due to his ill intention or his in competency. Thus, generous dividend payouts increase a firms value as it reduces the managements access to free cash flows and hence, controlling the problem of over investment. There are many more agency theories explaining how dividends can increase the value of a firm. One of them was by Easterbrook (1984); he proposed that dividend payments reduce agency problems in contrast to the transaction cost theory which is of the view that dividend payments reduce the value as it forces to raise costly finances from outside sources. His idea is that if the dividends are not paid, there is a problem of collective action that tends to lead to hap-hazard management of the firm. So, dividend payouts and raising external finance would attract auditory and regulatory measures by financial intermediaries like investment banks, respective stock exchange regulators and the potential investors as well. All this monitoring would lead to considerable reduction of agency costs and appreciate the market value of t he firm. Moreover, as defined by Jenson and Meckling (1976), Agency costs=monitoring costs+ bonding, costs+ residual loss i.e. sum of agency cost of equity and agency cost of debt. Hence, Easterbrook (1984) noted that dividend payments and raising new debt and its contract negotiations would reduce potential for wealth transfer. The realization for potential agency costs linked with separation of management and shareholders is not new. Adam Smith (1937) proposed that management of earlier companies is wayward. This problem was highly witnessed during at the time of British East Indian Companies and tracking managers was a failure due to inefficiencies and high costs of shareholder monitoring (Kindleberger, 1984). Scott (1912) and Carlos (1922) differ with this view point. They agree that although some fraud existed in the corporations, many of the activities of the managers were in line with those of the shareholders interests. An opportune and intelligent manager should always invest the surplus cash available into those opportunities which are well researched to be in the best interest of the shareholders. Berle and Means (1932) was the first to discover the insufficient utilization of funds which are surplus after other investment opportunities taken by the management. This thought was further promoted by Jensens (1986) free cash flow hypothesis. This hypothesis combined market information asymmetries with the agency theory. The surplus funds left after all the valuable projects are largely responsible for creation of the conflict of interest between the management and the shareholders. Payment of dividends and interest on other debt instruments reduce the cash flow with the management to invest in marginal net present value projects and for other perquisite consumptions. Therefore, the dividend theory is better explained by the combination of both the agency and the signaling theory rather than by any o ne of these alone. On the other hand, the free cash flow hypothesis rationalizes the corporate takeover frenzy of the 1980s Myers (1987 and 1990) rather than providing a clear and comprehensive dividend policy. The study by Baker et al. (2007) reports, that firms paying dividend in Canada are significantly larger and more profitable, having greater cash flows, ownership structure and some growth opportunities. The cash flow hypothesis proposes that insiders to a firm have more information about future cash flow than the outsiders, and they have incentivized motives to leak this to outsiders. Lang and Litzenberger (1989) check the cash flow signaling and free cash flow explanations of the effect of dividend declarations on the stock prices. This difference between permanent and temporary changes is also explored in Brook, Charlton, and Hendershott (1998). However, this study is based on the hypothesis that dividend changes contain cash flow information rather than information about earnings. This is the cash flow signaling hypothesis proposing that dividend changes signal expected cash flows changes. The dividend decisions are affected by a number of factors; many researchers have contributed in determining which determinant of dividend payout is the most significant in contributing to dividend decisions. It is said that the primary indicator of the firms capacity to pay dividends has been Profits. According to Lintner (1956) the dividend payment pattern of a firm is influenced by the current year earnings and previous year dividends. Pruitt and Gitmans (1991) survey of financial managers of 1000 largest U.S companies about the interplay among the investment and dividend decisions in their Firms reported that, current and past year profits are essential factors influencing dividend payments. The conclusion derived from Baker and Powells (2000) survey of NYSE-listed firms is that the major determinant is the anticipated level of future earnings and continuity of past dividends. The study of Aivazian, Booth, and Cleary (2003) concludes that profitability and return on equity positively correlate with the size of the dividend payout ratio. The study by Lv Chang-jiang and Wang Ke-min (1999) on 316 listed companies in China that paid cash dividends during 1997 and 1998 by using modified Lintner dividend model, suggested that the dividend payout ratio is due to the firms current earning level. Other researchers like Chen Guo-Hui and Zhao Chun-guang (2000), Liu Shu-lian and Hu Yan-hong (2003) also concluded their research on the above stated understanding about dividend policy of listed companies in China. A survey done by Baker, Farrelly, and Edelman (1985) and Farrelly, Baker, and Edelman (1986) on 562 New York Stock Exchange (NYSE) firms with normal kinds of dividend polices in 1983 suggested that the major determinants of dividend payments were the anticipated level of future earnings and the pattern of past dividends. DeAngelo et al. (2004) findings suggest that earnings do have some impact on dividend payment. He stated that the high/increasing dividend concentration may be the result of high/increasing earnings concentration. Goergen et al. (2005) study on 221 German firms shows that net earnings were the key determinants of dividend changes. Baker and Smith (2006) examined 309 sample firms exhibiting behavior consistent with a residual dividend policy and their matched counterparts to understand how they set their dividend policies. Their study showed that for the matched firms, the pattern of past dividends and desire to maintain a long-term dividend payout ratio elicit the highest level of agreement from respondents. The study by Ferris et al. (2006) found mixed results for the relation between a firms earnings and its ability to pay dividends. Kao and Wu (1994) used a time series regression analysis of 454 firms over the period of 1965 to1986, and showed that there was a positive relationshi p between unexpected dividends and earnings. Carroll (1995) used quarterly data of 854 firms over the period of 1975 to 1984, and examined whether quarterly dividend changes predicted future earnings. He found a significant positive relationship. Liquidity is also an important determinant of dividend payouts. A poor liquidity position would generate fewer dividends due to shortage of cash. Alli et.al (1993), reveal that dividend payments depend more on cash flows, which reflect the companys ability to pay dividends, than on current earnings, which are less heavily influenced by accounting practices. They claim current earnings do no really reflect the firms ability to pay dividends. A firm without the cash flow back up cannot choose to have a high dividend payout as it will ultimately have to either reduce its investment plans or turn to investors for additional debt. The study by Brook, Charlton and Hendershott (1998) states that, Firms expecting large permanent cash flow increases tend to increase their dividend. Managers do not increase dividends until they are positive that sufficient cash will flow in to pay them (Brealey-Myers-2002). Myers and Bacons (2001) study shows a negative relationship between the liquid ratio and dividend payout. For companies to enable them to enhance their dividend paying capacity, and thus, to generate higher dividend paying capacity, it is necessary to retain their earnings to finance investment in fixed assets. The study by Belans et al (2007) states that the relationship between the firms liquidity and dividend is positive which explains that firms with more market liquidity pay more dividends. Reddy (2006), Amidu and Abor (2006) find opposite evidence. Lintner (1956) posited that the level of retained earnings is a dividend decision by- product. Adaoglu (2000) study shows that the firms listed on Istanbul Stock Exchange follow unstable cash dividend policy and the main factor for determining the amount of dividend is earning of the firms. The same conclusion was drawn by Omet (2004) in case of firms listed on Amman Securities Market and he further states that the tax imposition on dividend does not have the significant impact on the dividend behavior of the listed firms. The study by Mick and Bacon (2003) concludes that future earnings are the most influential variable and that the past dividend patterns as well as current and expected levels are empirically relevant in explaining the dividend decision. Empirical support for Lintners findings, that dividends were indeed a function of current and past profit levels and were negatively correlated with the change in sales was found by Darling (1957), Fama and Babiak (1968). Benchman a nd Raaballe (2007) discovered that the propensity to pay out dividends is positively correlated to retained earnings. Also, the study by Denis and Osobov (2006) states that retained earnings are a significant dividend characteristic for non- US firms including UK, German, and French firms. One of the motives for dividend policy decision is maintaining a moderate share price as poor stock price performance mostly conveys negative information about firms reputation. An empirical research took by Zhao Chun-guang and Zhang Xue-li et al (2001) on all A shares listed companies listed in Shenzhen and Shanghai Stock Exchange, states that the more cash dividends is paid when the stock prices are high. Chen Guo-Hui and Zhao Chun-guang (2000) undertook a research on all A shares listed before 1996 and paid dividend into share capital in 1997 as their sampling, and employed single-factor analysis, multifactor regression analysis to analyze the data. Their research showed a positive stock price reaction to the cash dividend, stock dividend policy. Myers and Bacon (2001) discussed that the debt to equity ratio was positively correlated to the dividend yield. Therefore firms with relatively more investment opportunities would tend to be more geared and vice versa (Ross, 2000). The study by Hu and Liu, (2005) declares that there is a positive correlation between the cash dividend the companies pay and their current earnings, and a inverse relationship between the debt to total assets and dividends. Green et al. (1993) questioned the irrelevance argument and investigated the relationship between the dividends and investment and financing decisions .Their study showed that dividend payout levels are decided along with investment and financing decisions. The study results however do not support the views of Miller and Modigliani (1961). Partington (1983) declared that firms motives for paying dividends and extent to which dividends are decided are independent of investment policy. The study by Higgins (1981) declares a direct link between growths and financing needs, rapidly growing firms have external financing needs because working capital needs normally exceed the incremental cash flows from new sales. Higgins (1972) suggests that payout ratios are negatively related to firms need top fund finance growth opportunities. Other researchers like Rozeff (1982), Lloyd et al. (1985) and Collins et al. (1996) all show significantly negative relationship between historical sales growth and dividend payout whereas D, Souza (1999) however shows a positive but insignificant relationship in the case of growth and negative but insignificant relationship in case of market to book value. Jenson and Meckling (1976) find a strong relationship between dividends and investment opportunities. They explain, in some circumstances where firms have relative uptight disposable cash flow and a number of investment opportunities have, the shareholders are ready to accept low dividend payout ratio. From the investors point of view, the dividend payments represent definite evidence of a companys worth. A company that expects sufficient future cash flows, large enough to meet debt obligations and dividend payments, will increase dividend payout. Howe (1998) believed that the actions of the managers might convey information to the investors outside as they are more informed about the future prospects of their firms than the market. Reddy (2002) studied dividend behavior and expressed his views on the observed behavior with the help of signaling hypothesis. The undervalued firms (assessed by the price