The Nazis regarded the war against the Soviet Union as a 'war of Essay

The Nazis regarded the war against the Soviet Union as a 'war of extermination' (Vernichtungskrieg). What does it mean - Essay Example In  the  spring  of  1941, as preparations were under way for the invasion of the USSR, Hitler proclaimed that a war of destruction was about to start. He called for the annihilation of the Bolshevik leadership, thus laying the foundation for the extermination of what Hitler considered to be the biological source of Bolshevism: the Jews of the USSR. The application of Nazi ideas and ideology depended on two types of force, one of these took the form of indoctrination and propaganda, the other was based on terror. The initial phase of success on eastern front gave Wehrmacht, the opportunity to implement their policy of extermination (Lee 30). This resulted in the worst genocide of history, in which millions of people were killed brutally by using gassing techniques and starving them to death. Thus, the Nazis considered their war against Soviet Union as war of extermination and application of their policies of persecution. Nazis Ideology A profound understanding of Nazis ideolo gy is essential in order to understand the true spirit of Nazis war of extermination. The official name of Hitler’s movement throughout the period 1920 to 1945 was the National Socialist German Workers’ Party. ... Hence, Jews were to be excluded from German nationhood; all non-German immigration must be prevented (Lee 12) There were Nazis who emphasized the socialist element of their ideology, but these did not include Hitler. Instead, Hitler focused more and more on racial rather than economic explanations for major historical trends. He argued in his 1925 book Mein Kampf (My Struggle) that ‘The adulteration of the blood and racial deterioration conditioned thereby are the only causes that account for the decline of ancient civilizations; for it is never by war that nations are ruined, but by the loss of their powers of resistance, which are exclusively a characteristic of pure racial blood’ Lee 13) Hitler has unique importance as the creator of the Nazis programme and ideology; most of his ideas are contained in Mein Kampf and the Zweites Buch (Second Book).(p14) A vital component of Nazism was the ‘Fuehrer principle’ (Fuhrerprinzip). It is true that the cult of lea dership is to be found in all fascist movements, but it was of particular importance in the Nazi context since Hitler’s ideas were crucial in defining the nature of Nazi eclecticism. Above all, Hitler provided Nazism with a unique vision of racial purity and anti-Semitism (Lee 14). Adolf Hitler  had argued in his autobiography  Mein Kampf  for the necessity of Lebensraum, acquiring new territory for German settlement in Eastern Europe. He envisaged settling Germans there as a master race, while exterminating or deporting most of the inhabitants to  Siberia  and using the remainder as  slave labor. The linking of anti-Semitic accusations to race struggle is what made Nazism so genocidal. The Nazis believed the Jews were responsible for what they

Impacts on Agency Cost Theory

Impacts on Agency Cost Theory The main purpose of this research is to investigate how the determinants of the capital structure (leverage) and the dividend payout policy impact the agency cost theory. Literature review part picked up the relevant material related to agency theory, leverage, and dividends payout policy. The literature review section goes through the agency cost literature, and explores the financial policies; the capital structure (leverage), and the dividend payout policy and that these policies would influence the agency cost theory. 2.1 Agency theory Literature The notion of the agency theory is widely used in economics, finance, marketing, legal, and social sciences; Jensen and Meckling (1976) initiated and developed it. Capital structure (leverage) for the firms is determined by agency costs, i.e., costs related to conflict of interests between various groups including managers, which have claims on the firm’s resources (Harris and Raviv, 1991). Jensen and Meckling (1976) defined the agency relationship as â€Å"a contract under which one or more persons (the principal) engage another person (the agent), to perform some service on their behalf which involves delegating some decision making authority to the agent† pp.308. Assuming that both parties utility maximizes, the agents are not possible to act in the best interest of the principal. Furthermore, Jensen and Meckling (1976) contended that the principal can limit divergences from his interest by establishing appropriate incentives for the agent, and by incurring monitoring costs (pecuniary and non pecuniary), which are designed to limit the aberrant activities of the agent. Jensen and Meckling (1976) argued that the agency costs are unavoidable, since the agency costs are borne entirely by the owner. Jensen and Meckling (1976) contended that the owner is motivated to see these costs minimized. Authors who initiated and developed the agency theory have argued that if the owner manages a wholly owned firm, then he can make operating decisions that maximise his utility. The agency costs are generated if the owner manager sells equity claims on the firms, which are identical to his.  It also generated by the divergence between his interest and those of the outside shareholders, since he then bears only a fraction of the costs of any non-pecuniary benefits he takes out maximizing his own utility (Jensen and Meckling, 1976). Jensen and Meckling (1976) suggested two types of conflicts in the firm; First of all, the conflict between shareholders and managers arises because managers hold less than a hundred percent of the residual claim. Therefore, they do not capture the entire gain from their profit enhancement activities, but they do bear the entire cost of these activities. For example, managers can invest less effort in managing firm resources and may be able to transfer firm resources to their own, personal benefit, i.e., by consuming â€Å"perquisites† such as a fringe benefits. The manager bears the entire cost of refraining from these activities but captures only a fraction of the gain. As a result, managers over indulge in these interests relative to the level that would maximize the firm value. This inefficiency reduced the large fraction of the equity owned by the manager. Holding constant the manager’s absolute investment in the firm, increases in the fraction of the firm financed by debt increases the manager’s share of the equity and mitigates the loss from conflict between the managers and shareholders. Furthermore, as pointed out by Jensen (1986), since debt commits the firm to pay out cash, it reduces the amount of free cash flow available to managers to engage in these types of interests.  As a result, this reduction of the conflict between managers and shareholders will constitute the benefit of debt financing. Second, they also suggested that the conflict between debt holders and shareholders arises because the debt contract, gives shareholders an incentive to invest sub optimally. Especially when the debt contract provides that, if an investment yields large returns, well above the face value of the debt, shareholders capture most of the gain. However, if the investment fails, debt holders bear the consequences. Therefore, shareholders may benefit from investing in very risky projects, even if they are under valued; such investments result in an adverse in the value of debt. Lasfer (1995) argued that debt exacerbates the conflict between debt holders and shareholders. Shareholders will benefit from investments in risky projects at the expense of debt holders.  If the investment yields higher return than the face value of debt, shareholders capture most of the gain, however, if the investment fails, debt holders lose, given that. Therefore, shareholders protected by the limited liability. On the other hand, if the benefits captured by debt holders reduce the returns to shareholders, then an incentive to reject positive net present projects has created. Thus, the debt contract gives shareholders incentives to invest sub optimally. In addition, Myers (1977) argued that the firms with many growth opportunities should not be financed by debt, to reduce the negative net value projects.   Furthermore, some of arguments have been debated that the magnitude of the agency costs varies among firms. It will depend on the tastes of managers, the ease with which they can exercise their own preferences as opposed to value maximization in decision making, and the costs of monitoring and bonding activities. Therefore, the agency costs depend upon the cost of measuring the manager’s performance and evaluating it (Jensen and Meckling, 1976). (Jensen, 1986) either points out that when firms make their financing decision, they evaluate the advantages that may arise from the resolution of the conflicts between managers, shareholders and from long run tax shields.   In addition, Lasfer (1995) argues that debt finance creates a motivation for managers to work harder and make better investment decisions. On the other hand, debt works as a disciplining tool, because default allows creditors the option to force the firm into liquidation. Debt also generates information that can be used by investors to evaluate major operating decisions including liquidation (Harris and Raviv, 1990). Jensen (1986) debated that when using debt without retention of the proceeds of the issue, bonds the managers to meet their promise to pay future cash flows to the debt holders. Thus, debt can be an effective substitute for dividends. By issuing debt in exchange for stock, managers are bonding their promise to pay out future cash flows in a way that cannot be accomplished by simple dividend increases. Consequently, managers give recipients of the debt the right to take the firm to the bankruptcy court if they do not maintain their commitment to make the interest and principle payments. Thus, debt reduces the agency costs of free cash flow by reducing the cash flow available for spending at the discretion of managers. Jensen (1986) claimed that these control effects of debt are a potential determinant of capital structure. In practice, it is possible to reduce the owner manager non pecuniary benefits; by using these instruments external auditing, formal control systems, budget restrictions, and the establishment of incentive compensation systems serve to identify the manager’s interests more closely with those of the outside shareholders (Jensen and Meckling, 1976). Jensen (1986) suggested that leverage and dividend may act as a substitute mechanism to reduce the agency costs. Agency cost models predict that dividend payments can reduce the problems related to information asymmetry. Dividend payments might be consider also as a mechanism to reduce cash flow under management control, and help to mitigate the agency problems (Rozeff, 1982, and Easterbrook, 1984). Therefore, paying dividends may have a positive impact on the firms value. â€Å"Agency theory posits that the dividend mechanism provides an incentive for managers to reduce the costs related to the principal agent relationship, one way to reduce agency costs is to increase dividends† Baker and Powell (1999). They also claim that firm use the dividends use as a tool to monitor the management performance. Moreover, Easterbrook (1984) and Jensen (1986) argue that agency costs exist in firms because managers may not always want to maximize shareholder’s wealth due to the separation of ownership and control. Jensen (1986) addresses the free cash flow theory, in terms of this theory the conflict of interest between managers and stockholders is rooted in the presence of informational and self interest behavior. He defines the free cash flow as â€Å"cash flow in excess of that required to fund all projects that have positive net present value when discounted at the relevant cost of capital† (Jensen,1986). Within the context of the free cash flow hypothesis, firms prefer to increase their dividends and distribute the excess free cash flow in order to reduce agency costs. Consequently, markets react positively to this type of information. This theory is attractive because it is consistent with the evidence about investment and financing decisions (Jensen, 1986, Frankfurter and Wood, 2002). 2.2 Leverage Literature This section reviews the determinants of capital structure by different relevant literatures. Titman and Wessels (1988) study is considered to be one of the leading studies in the developed markets. They tried to extend the empirical work in capital structure theory by examining a much broader set of capital structure theories, and to analyze measures of short term, long term, and convertible debt. The data covers the US industrial companies from 1974 to 1982, and they used a factor analytic approach for estimating the impact of unobservable attributes on the choice of corporate debt ratios. As a result, the study confirms these factors, collateral values of assets, non-debt tax shields, growth, and uniqueness of the business, industry classification, firm size, and firm profitability. They also found that there is a negative relationship between debt levels and the uniqueness of the business. In addition, short term debt ratios have a negative relationship to firm size. However, they do not provide support for the effect on debt ratios arising from non debt tax shields, volatility, collateral value of assets, and growth. In Jordan, Al-Khouri and Hmedat (1992) aimed to find the effect of the earnings variability on capital structure of Jordanian corporations from the period from 1980 to 1988. They included 65 firms. The study used a multivariate regression approach with financial leverage as the dependent variable measured in three ways; first, long term debt over total assets, secondly, short term debt over total assets, and finally, short term debt plus long term debt over total assets. The standard deviation of the earnings variability and the size of the firm measured as independent variables. They concluded that the firm size is considered as a significant factor in determining the capital structure of the firm, and insignificant relationship between the earning variability and financial leverage of the firm. Furthermore, they suggest that the type of industry is not considered as a significant factor in determining the capital structure of the firm. Rajan and Zingales (1995) provided international evidence about the determinants of capital structure. They examined the capital structure in other countries related to factors similar to those that influence United States firms. The database contains 2583 companies in the G7 countries. They used regression analysis with the firm’s leverage (total debt divided by total debt plus total equity) as the dependent variable. Tangible assets, market to book ratio, firm size, and firm profitability used as independent variables. They found that in market bases firms with a lot of fixed assets are not highly levered, however, they supported that a positive relationship exists between tangible assets, and firms size, and capital structure (leverage). On the contrary, they confirmed that there is a negative relationship between leverage and the market to book ratio, and profitability. From the capital structure literature, Ozkan (2001) also investigated that the determinants of the target capital structure of firms and the role of the adjustment process in the UK using a sample of 390 firms. The multiple regression approach (panel data) was used to measure the debts by total debt to total assets, on the one hand. He also used in his model, non debt tax shield, firm size, liquidity, firm profitability, and firm growth as an independent variables. He confirmed that the profit, liquidity, non debt tax shield, and growth opportunities have a negative relationship to capital structure (leverage). Finally, he supported that there is a positive effect arising from size of firms on leverage. The study provided evidence that the UK firms have long term target leverage ratios and that they adjust quickly to their target ratios. The study by Booth et al. (2001) is considered as a one of the leading studies in the developing countries. It aimed to assess whether capital structure theory is applicable across developing countries with different institutional structures. The data include balance sheets and income statements for the largest companies in each selected country from the year 1980 to 1990. It included 10 developing countries: India, Pakistan, Thailand, Malaysia, Zimbabwe, Mexico, Brazil, Turkey, Jordan, and Korea. The study used multivariate regression analysis with dependent variables; total debt ratio, long term book debt ratio, and long term market to debt ratio. The independent variables are; average tax rate, tangibility, business risk, firm size, firm profitability, and market to book ratio. Booth et al. found that the more profitable the firm the lower the debt ratio, regardless how the debt ratio is defined. In addition, the higher the tangible assets mix, the higher is the long term debt ratio but the smaller is the total debt ratio. Finally, it concluded that debt ratios in developing countries seem to be affected in the same way by the same set of variables that are significant in developed countries. Voulgaris et al. (2004) investigated the determinants of capital structure for Greek manufacturing firms. The study used panel data of two random samples one for small and medium sized enterprises (SMEs) including 143 firms and another for large sized enterprises (LSEs) including 75 firms for the period from 1988 to 1996. It used a leverage model as a dependent variable (short run debt ratio, long run debt ratio, and total debt ratio). On the other hand, It used firm size, asset structure, profitability, growth rate, stock level, and receivables as independent variables. The study suggested that there are similarities and differences in the determinants of capital structure among the two samples. The similarities include that the firm size and growth opportunities positively related to leverage. While, they confirm that the profitability has a negative relationship to leverage. Moreover, they pointed out the differences that the inventory period, and account receivables collection period have been found as determinants of debt in SMEs but not in LSEs. Liquidity doest not affect LSEs leverage, but it affects the SMEs. Finally, they also suggested that there is a positive relationship between profit margins and short term debt ratio only for SMEs. Voulgaris et al. (2004) have debated this arguments as; ‘‘the attitude of banks toward small sized firms should be changed so they provide easier access to long-term debt financing’’. In addition, â€Å"enactment of rules that will allow transparency of operations in the Greek stock market and a healthier development of the newly established capital market for SMEs will assist Greek firms into achieving a stronger capital structure’’. 2.3 Dividends payout ratio literature Dividend payout ratios vary between firms and the dividend payout policy will impact the agency cost theory. Rozeff (1982) investigated in his study that the dividends policy will be rationalize by appealing the transaction cost and agency cost associated with external finance. Moreover, Rozeff (1982) had found evidences supporting how the agency costs influence the dividends payout ratio. He found that the firms have distributed lower dividend payout ratios when they have a higher revenue growth, because this growth leads to higher investment expenditures.  This evidence supports the view of the investment policy affect on the dividend policy; the reason for that influences is that would the external finance be costly. Conversely, he found that the firms have distributed higher dividends payouts when insiders hold a lower portion of the equity and (or) a greater numbers of shareholders own the outside equity. Rozeff (1982) pointed out that this evidence supports that the dividend payments are part of the firm’s optimum monitoring and that bonding package reduces the agency costs. Moreover, if the agency cost declines when the dividend payout does and if the transaction cost of external finance increases when the dividend payout is increased as well, then minimization of these costs will lead to a unique optimum for a given firm. In addition, Hansen, Kumar, and Shome [HKS], (1994) pointed out the relevance of the monitoring theory for explaining the dividends policy of regulated electric utilities. From an agency cost perspective, they emphasized their ideas that the dividends promote monitoring of what they call the shareholders regulator conflict. Therefore, it is a monitoring role of dividends. On the contrary, Easterbrook’s (1984) has noted that the dividends monitoring of the shareholders managers conflict. They also have observed that the utilities firms have a discipline of monitoring mechanism for controlling agency cost, depending on the relative cost effectiveness of those costs (Crutchly and Hensen, 1989). The regulator process will impact the conflict between the shareholders and mangers, by mitigate the managers’ power to appropriate shareholders’ wealth and consume perquisites (Hansen et al. 1994). On the other hand, they argued this issue by the cost-plus concept, regulators may set into motion of managerial incentive structure that potentially conflicts with shareholders interests, this concept solve the shareholders-regulators concept since the sources of the conflict lies in differences in the perceptions of what constitutes fair cost plus. Therefore, the regulation can control some of the agency cost while exacerbating others. In their study, they conduct also that the managers and shareholders of unregulated firms have a several mechanisms whether, internal or external, for controlling agency cost. In addition, they observed that the dividend policy to reduce the agency theory is not limited, depending on their findings they suggested that the cost of dividend payout policy might be below the costs paid by other types of firm. In fact the utilities company maintain high debt ratio that would maintain as well as equity agency costs. Aivazian et al. (2003b) compare the dividend policy behaviour of eight emerging markets with dividend policies in the US firms in the period from 1980 to 1990. The sample included firms from; Korea, Malaysia, Zimbabwe, India, Thailand, Turkey, Pakistan, and Jordan. They found that it is difficult to predict dividend changes for such emerging markets. This is because the quality of firms with reputations for cutting dividends is somehow similar to those who increase their dividends, than for the US control sample. In addition, current dividends are less sensitive to past dividends than for the US sample of firms. They also found that the Lintner model[1] does not work well for the sample of emerging markets. These results indicate that the institutional frameworks in these emerging markets make dividend policy a weak technique for signaling future earnings and reducing agency costs than for the US sample of firms. Furthermore, Omran and Pointon (2004) investigated the role of dividend policy in determining share prices, the determinants of payout ratios, and the factors that affect the stability of dividends for a sample of 94 Egyptian firms. They found that retentions are more important than dividends in firms with actively traded shares, but that accounting book value is more important than dividends and earnings for non-actively traded firms. However, when they combined both the actively traded and non-traded firms, they found that dividends are more important than earnings. In the determinants of payout ratios, they found that there is a negative relationship between the leverage ratio and market to book ratio, tangibility, and firm size on the one hand, to the payout ratios in actively traded firms. On the contrary, they also found that there is a positive relationship between the business risk, market to book and firm size (measured by total assets) to payout ratios in non-actively traded firms. Furthermore, for the whole sample, leverage has a positive relationship with payout ratios, while firm size (measured by market capitalization) is negatively related to payout ratios. Finally, the stepwise logistic regression analysis shows that decreasing dividends is associated with lack of liquidity and overall profitability. In addition, increasing dividends is associated with higher overall profitability. 2.4 Summary In this chapter the relevant literatures addressing the reviews of the agency cost theory related to the financial policies. It also gives a theoretical background on how the conflicts of interests arise between the agents (managers) and the principal (shareholders). The second and third sections present the determinants of leverage and dividend payout policy. The following chapter will go through the description of data, and data methodology was employed for this dissertation. 3. Methodology, Research Design and Data Description The aim of the current study is to investigate firstly, the empirical evidence of the determinants of leverage and dividend policy under the agency theory concept for the period 2002-2007. The majority of the previous studies in the field of capital structure have made in the context of developed countries such as USA and UK. It is important to investigate the main determinants of leverage and dividend policy in developing countries where, capital markets, are less developed, less competitive and suffering from the lack of compatible regulations and sufficient supervision This chapter will explain the research methodology of this study. This chapter also identifies the sample of the study. Moreover, it presents an illustration of the econometric techniques that have been employed. In addition, this chapter gives a brief explanation of the specification tests used in the study to identify which technique is the best for the data set. This chapter structured as follows; Section (3.1) presents data description.  Section (3.2) presents the sample of the study. Section (3.3) discusses the econometric techniques employed in the study. Finally, Section (3.4) provides a brief summary. 3.1 Data Description The data used in the study are secondary data for companies listed at Amman Stock Exchange (ASE) for the period of 2002-2007. The data was extracted from the firm’s annual reports, and from Amman Stock Exchange’s publications (The Yearly Companies Guide, and Amman Stock Exchange Monthly Statistical Bulletins). Data is readily available in the form of CD and on the website of the Amman Stock Exchange. The reason for the study period selection was to minimize the missing observations for the sample companies. Moreover, a different reporting system has been used since 2000. The application of the new reporting system was the result of the transparency act which was launched in 1999, and forced all companies listed in Amman Stock Exchange to disclose their financial information and publish their annual reports according to the International Financial Reporting Standards. In other words, this data series for the period from 2002-2007 was chosen in terms of consistency and comparability purposes. 3.2 Sample of the study The sample of the study consists of the Jordanian Manufacturing companies listed on the Amman Stock Exchange for the period of 2002-2007. The total number of the companies listed in ASE at the end of year 2007 was 215. Officially, these companies are divided into four main economic sectors; Banks sector, Insurance sector, Services sector and finally Industrial sector. Moreover, this study is concerned only with Jordanian manufacturing companies that their stocks are traded in the organized market. It is important to note that the capital structure of financial firms has special characteristic when compared to the capital structure of non financial firms, they also have special tax treatment (Lester, 1995). On the other hand, the financial firms have a higher leverage rate, which may tend to make the analysis results biased. Moreover, financial firms their leverage is affected by investor insurance schemes (Rajan and Zingals, 1995). For these reasons, the potential sample of the study consists of non financial (Manufacturing) companies that are still listed in Amman Stock Exchange. The total number of industrial companies listed in ASE at the end of year 2007 was 88 companies, which are 40.93% of the total number of the companies listed in that market. The study conducts the following criteria in selecting the sample upon the Jordanian manufacturing companies by excluding all the firms that was incorporated after year 2002, and all the firms that have merged or acquired during this period, further, the firms have liquidated or delisted by the Amman Stock Exchange, and finally, the study have also excluded the firms that have information missing for that period. The application for those criteria has resulted in 52 samples of manufacturing companies. The data for the variables that are included in the study models is tested using three different econometric techniques which will be discuss briefly in the next sections. 3.3 Econometrics techniques Hairs et al. (1998) argued that the application of econometrics technique depends on the nature of data employed in the study, and to what extent it would be realised to the research objectives. In order to find a best and adequate data model, the current study employs pooled data technique and panel data analysis which is usually estimated by either fixed effect technique or random effects technique.  The following sections provide a brief discussion on the econometrics techniques that the current study uses to estimate the empirical models. 3.3.1 Pooled Ordinary Least Square (OLS) technique All the models used in the study have been tested by the pooled data analysis technique. The pooled data is the data that contains pooling of time series and cross-sectional observations (combination of time series and cross-section data) (Gujarati, 2003). The pooled data analysis has many advantages over the pure time series or pure cross sectional data. It generates more informative data, more variability, less collinearity among variables, more degrees of freedom, and more efficiency (Gujarati, 2003). The underlying assumption behind the pooled analysis is that, the intercept value and the coefficients of all the explanatory variables are the same for all the firms, as well as they are constant over time (no specific time or individual aspects). It also assumes that the error term captures the differences between the firms (across-sectional units) over the time. However, (Gujarati, 2003) has pointed out that these assumptions are highly restrictive. He argues that although of it is simplicity and advantages, the pooled regression may distort the true picture of the relationship between the dependent and independent variables across the firms. Pooled model will be simply estimated by Ordinary Least Square (OLS). However, OLS will be appropriate if no individual (firm) or time specific effects exist. If they exist, the unobserved effects of unobserved individual and time specific factors on dependent variable can be accommodated by using one of the panel data techniques.   According to (Gujarati, 2003) panel data is a special form of pooled data in which the same cross-sectional unit is surveyed over time. It helps researchers to substantially minimize the problems that arise when there is an omitted variables problems such as time and individual-specific variables and to provide robust parameter estimates than time series and (or) cross sectional data. All the empirical models that have been tested by using pooled data analysis and tested again on the basis of panel data analysis techniques (Fixed Effects and Random Effects).   3.3.2 The fixed effects model (FEM) Fixed effects technique allows control for unobserved heterogeneity which describes individual specific effects not captured by observed variables. According to Gujarati (2003) the fixed effect model takes into account the specific effect of each firm â€Å"the individuality† by allowing the intercept vary across individuals (firms), but each individual’s intercept does not vary over time. However, it still assumes that the slope coefficients are constant across individuals or over time. Two methods used to control for the unobserved fixed effects within the fixed effects model; the first differences and Least Square Dummy variables (LSDV) methods.  For the purposes of the current study, (LSDV) was used where; two sets of dummy variables (industry, and year dummy variables). The additional dummy variables control for variables that are constant across firms but change over time. Therefore, the combine time and individual (firm) fixed effects model eliminates the omitted variables bias arising both from unobserved factors that are constant over time and unobserved factors that are constant across firms. However, fixed effects model consumes the degrees of freedom, if estimated by the Least Square Dummy Variable (LSDV) method and, too many dummy variables are introduced (Gujarati, 2003). Furthermore, with too many variables used as regressors in the models, there is the possibility of multicollinearity. It is worth noting that OLS technique used in estimating fixed effects model. 3.3.3 The Random Effects Model (REM) By contrast, fixed effects model, the unobserved effects in random effects model is captured by the error term (ÃŽ µit) consisting of an individual specific one (ui) and an overall component (vit) which is the combined time series and cross-section error. Moreover, it treats the intercept coefficient as a random variable with a mean value (ÃŽ ±0) of all cross-sectional (firms) intercepts and the error component represents the random deviation of individual intercept from this mean value (Gujarati, 2003). Consequently, the individual differences in the intercept values of each firm are reflected in the error term (ui). On the other hand, the Generalized Least Square (GLS) used in estimating random affects model.  This is because the GLS technique takes into account the different correlation structure of the error term in the Random Effect Model (REM) (Gujarati, 2003). 3.3.4 Statistical specification tests The study uses three specification tests to identify which empirical method is the best. These tests are used for testing the fixed effect model versus the pooled model (F-statistics), the random effect model versus pooled model (Lagrange Multiplier test) (LM), and the fixed effect model versus the random effect model (Hausman test). The following sub-sections offer brief disc Impacts on Agency Cost Theory Impacts on Agency Cost Theory The main purpose of this research is to investigate how the determinants of the capital structure (leverage) and the dividend payout policy impact the agency cost theory. Literature review part picked up the relevant material related to agency theory, leverage, and dividends payout policy. The literature review section goes through the agency cost literature, and explores the financial policies; the capital structure (leverage), and the dividend payout policy and that these policies would influence the agency cost theory. 2.1 Agency theory Literature The notion of the agency theory is widely used in economics, finance, marketing, legal, and social sciences; Jensen and Meckling (1976) initiated and developed it. Capital structure (leverage) for the firms is determined by agency costs, i.e., costs related to conflict of interests between various groups including managers, which have claims on the firm’s resources (Harris and Raviv, 1991). Jensen and Meckling (1976) defined the agency relationship as â€Å"a contract under which one or more persons (the principal) engage another person (the agent), to perform some service on their behalf which involves delegating some decision making authority to the agent† pp.308. Assuming that both parties utility maximizes, the agents are not possible to act in the best interest of the principal. Furthermore, Jensen and Meckling (1976) contended that the principal can limit divergences from his interest by establishing appropriate incentives for the agent, and by incurring monitoring costs (pecuniary and non pecuniary), which are designed to limit the aberrant activities of the agent. Jensen and Meckling (1976) argued that the agency costs are unavoidable, since the agency costs are borne entirely by the owner. Jensen and Meckling (1976) contended that the owner is motivated to see these costs minimized. Authors who initiated and developed the agency theory have argued that if the owner manages a wholly owned firm, then he can make operating decisions that maximise his utility. The agency costs are generated if the owner manager sells equity claims on the firms, which are identical to his.  It also generated by the divergence between his interest and those of the outside shareholders, since he then bears only a fraction of the costs of any non-pecuniary benefits he takes out maximizing his own utility (Jensen and Meckling, 1976). Jensen and Meckling (1976) suggested two types of conflicts in the firm; First of all, the conflict between shareholders and managers arises because managers hold less than a hundred percent of the residual claim. Therefore, they do not capture the entire gain from their profit enhancement activities, but they do bear the entire cost of these activities. For example, managers can invest less effort in managing firm resources and may be able to transfer firm resources to their own, personal benefit, i.e., by consuming â€Å"perquisites† such as a fringe benefits. The manager bears the entire cost of refraining from these activities but captures only a fraction of the gain. As a result, managers over indulge in these interests relative to the level that would maximize the firm value. This inefficiency reduced the large fraction of the equity owned by the manager. Holding constant the manager’s absolute investment in the firm, increases in the fraction of the firm financed by debt increases the manager’s share of the equity and mitigates the loss from conflict between the managers and shareholders. Furthermore, as pointed out by Jensen (1986), since debt commits the firm to pay out cash, it reduces the amount of free cash flow available to managers to engage in these types of interests.  As a result, this reduction of the conflict between managers and shareholders will constitute the benefit of debt financing. Second, they also suggested that the conflict between debt holders and shareholders arises because the debt contract, gives shareholders an incentive to invest sub optimally. Especially when the debt contract provides that, if an investment yields large returns, well above the face value of the debt, shareholders capture most of the gain. However, if the investment fails, debt holders bear the consequences. Therefore, shareholders may benefit from investing in very risky projects, even if they are under valued; such investments result in an adverse in the value of debt. Lasfer (1995) argued that debt exacerbates the conflict between debt holders and shareholders. Shareholders will benefit from investments in risky projects at the expense of debt holders.  If the investment yields higher return than the face value of debt, shareholders capture most of the gain, however, if the investment fails, debt holders lose, given that. Therefore, shareholders protected by the limited liability. On the other hand, if the benefits captured by debt holders reduce the returns to shareholders, then an incentive to reject positive net present projects has created. Thus, the debt contract gives shareholders incentives to invest sub optimally. In addition, Myers (1977) argued that the firms with many growth opportunities should not be financed by debt, to reduce the negative net value projects.   Furthermore, some of arguments have been debated that the magnitude of the agency costs varies among firms. It will depend on the tastes of managers, the ease with which they can exercise their own preferences as opposed to value maximization in decision making, and the costs of monitoring and bonding activities. Therefore, the agency costs depend upon the cost of measuring the manager’s performance and evaluating it (Jensen and Meckling, 1976). (Jensen, 1986) either points out that when firms make their financing decision, they evaluate the advantages that may arise from the resolution of the conflicts between managers, shareholders and from long run tax shields.   In addition, Lasfer (1995) argues that debt finance creates a motivation for managers to work harder and make better investment decisions. On the other hand, debt works as a disciplining tool, because default allows creditors the option to force the firm into liquidation. Debt also generates information that can be used by investors to evaluate major operating decisions including liquidation (Harris and Raviv, 1990). Jensen (1986) debated that when using debt without retention of the proceeds of the issue, bonds the managers to meet their promise to pay future cash flows to the debt holders. Thus, debt can be an effective substitute for dividends. By issuing debt in exchange for stock, managers are bonding their promise to pay out future cash flows in a way that cannot be accomplished by simple dividend increases. Consequently, managers give recipients of the debt the right to take the firm to the bankruptcy court if they do not maintain their commitment to make the interest and principle payments. Thus, debt reduces the agency costs of free cash flow by reducing the cash flow available for spending at the discretion of managers. Jensen (1986) claimed that these control effects of debt are a potential determinant of capital structure. In practice, it is possible to reduce the owner manager non pecuniary benefits; by using these instruments external auditing, formal control systems, budget restrictions, and the establishment of incentive compensation systems serve to identify the manager’s interests more closely with those of the outside shareholders (Jensen and Meckling, 1976). Jensen (1986) suggested that leverage and dividend may act as a substitute mechanism to reduce the agency costs. Agency cost models predict that dividend payments can reduce the problems related to information asymmetry. Dividend payments might be consider also as a mechanism to reduce cash flow under management control, and help to mitigate the agency problems (Rozeff, 1982, and Easterbrook, 1984). Therefore, paying dividends may have a positive impact on the firms value. â€Å"Agency theory posits that the dividend mechanism provides an incentive for managers to reduce the costs related to the principal agent relationship, one way to reduce agency costs is to increase dividends† Baker and Powell (1999). They also claim that firm use the dividends use as a tool to monitor the management performance. Moreover, Easterbrook (1984) and Jensen (1986) argue that agency costs exist in firms because managers may not always want to maximize shareholder’s wealth due to the separation of ownership and control. Jensen (1986) addresses the free cash flow theory, in terms of this theory the conflict of interest between managers and stockholders is rooted in the presence of informational and self interest behavior. He defines the free cash flow as â€Å"cash flow in excess of that required to fund all projects that have positive net present value when discounted at the relevant cost of capital† (Jensen,1986). Within the context of the free cash flow hypothesis, firms prefer to increase their dividends and distribute the excess free cash flow in order to reduce agency costs. Consequently, markets react positively to this type of information. This theory is attractive because it is consistent with the evidence about investment and financing decisions (Jensen, 1986, Frankfurter and Wood, 2002). 2.2 Leverage Literature This section reviews the determinants of capital structure by different relevant literatures. Titman and Wessels (1988) study is considered to be one of the leading studies in the developed markets. They tried to extend the empirical work in capital structure theory by examining a much broader set of capital structure theories, and to analyze measures of short term, long term, and convertible debt. The data covers the US industrial companies from 1974 to 1982, and they used a factor analytic approach for estimating the impact of unobservable attributes on the choice of corporate debt ratios. As a result, the study confirms these factors, collateral values of assets, non-debt tax shields, growth, and uniqueness of the business, industry classification, firm size, and firm profitability. They also found that there is a negative relationship between debt levels and the uniqueness of the business. In addition, short term debt ratios have a negative relationship to firm size. However, they do not provide support for the effect on debt ratios arising from non debt tax shields, volatility, collateral value of assets, and growth. In Jordan, Al-Khouri and Hmedat (1992) aimed to find the effect of the earnings variability on capital structure of Jordanian corporations from the period from 1980 to 1988. They included 65 firms. The study used a multivariate regression approach with financial leverage as the dependent variable measured in three ways; first, long term debt over total assets, secondly, short term debt over total assets, and finally, short term debt plus long term debt over total assets. The standard deviation of the earnings variability and the size of the firm measured as independent variables. They concluded that the firm size is considered as a significant factor in determining the capital structure of the firm, and insignificant relationship between the earning variability and financial leverage of the firm. Furthermore, they suggest that the type of industry is not considered as a significant factor in determining the capital structure of the firm. Rajan and Zingales (1995) provided international evidence about the determinants of capital structure. They examined the capital structure in other countries related to factors similar to those that influence United States firms. The database contains 2583 companies in the G7 countries. They used regression analysis with the firm’s leverage (total debt divided by total debt plus total equity) as the dependent variable. Tangible assets, market to book ratio, firm size, and firm profitability used as independent variables. They found that in market bases firms with a lot of fixed assets are not highly levered, however, they supported that a positive relationship exists between tangible assets, and firms size, and capital structure (leverage). On the contrary, they confirmed that there is a negative relationship between leverage and the market to book ratio, and profitability. From the capital structure literature, Ozkan (2001) also investigated that the determinants of the target capital structure of firms and the role of the adjustment process in the UK using a sample of 390 firms. The multiple regression approach (panel data) was used to measure the debts by total debt to total assets, on the one hand. He also used in his model, non debt tax shield, firm size, liquidity, firm profitability, and firm growth as an independent variables. He confirmed that the profit, liquidity, non debt tax shield, and growth opportunities have a negative relationship to capital structure (leverage). Finally, he supported that there is a positive effect arising from size of firms on leverage. The study provided evidence that the UK firms have long term target leverage ratios and that they adjust quickly to their target ratios. The study by Booth et al. (2001) is considered as a one of the leading studies in the developing countries. It aimed to assess whether capital structure theory is applicable across developing countries with different institutional structures. The data include balance sheets and income statements for the largest companies in each selected country from the year 1980 to 1990. It included 10 developing countries: India, Pakistan, Thailand, Malaysia, Zimbabwe, Mexico, Brazil, Turkey, Jordan, and Korea. The study used multivariate regression analysis with dependent variables; total debt ratio, long term book debt ratio, and long term market to debt ratio. The independent variables are; average tax rate, tangibility, business risk, firm size, firm profitability, and market to book ratio. Booth et al. found that the more profitable the firm the lower the debt ratio, regardless how the debt ratio is defined. In addition, the higher the tangible assets mix, the higher is the long term debt ratio but the smaller is the total debt ratio. Finally, it concluded that debt ratios in developing countries seem to be affected in the same way by the same set of variables that are significant in developed countries. Voulgaris et al. (2004) investigated the determinants of capital structure for Greek manufacturing firms. The study used panel data of two random samples one for small and medium sized enterprises (SMEs) including 143 firms and another for large sized enterprises (LSEs) including 75 firms for the period from 1988 to 1996. It used a leverage model as a dependent variable (short run debt ratio, long run debt ratio, and total debt ratio). On the other hand, It used firm size, asset structure, profitability, growth rate, stock level, and receivables as independent variables. The study suggested that there are similarities and differences in the determinants of capital structure among the two samples. The similarities include that the firm size and growth opportunities positively related to leverage. While, they confirm that the profitability has a negative relationship to leverage. Moreover, they pointed out the differences that the inventory period, and account receivables collection period have been found as determinants of debt in SMEs but not in LSEs. Liquidity doest not affect LSEs leverage, but it affects the SMEs. Finally, they also suggested that there is a positive relationship between profit margins and short term debt ratio only for SMEs. Voulgaris et al. (2004) have debated this arguments as; ‘‘the attitude of banks toward small sized firms should be changed so they provide easier access to long-term debt financing’’. In addition, â€Å"enactment of rules that will allow transparency of operations in the Greek stock market and a healthier development of the newly established capital market for SMEs will assist Greek firms into achieving a stronger capital structure’’. 2.3 Dividends payout ratio literature Dividend payout ratios vary between firms and the dividend payout policy will impact the agency cost theory. Rozeff (1982) investigated in his study that the dividends policy will be rationalize by appealing the transaction cost and agency cost associated with external finance. Moreover, Rozeff (1982) had found evidences supporting how the agency costs influence the dividends payout ratio. He found that the firms have distributed lower dividend payout ratios when they have a higher revenue growth, because this growth leads to higher investment expenditures.  This evidence supports the view of the investment policy affect on the dividend policy; the reason for that influences is that would the external finance be costly. Conversely, he found that the firms have distributed higher dividends payouts when insiders hold a lower portion of the equity and (or) a greater numbers of shareholders own the outside equity. Rozeff (1982) pointed out that this evidence supports that the dividend payments are part of the firm’s optimum monitoring and that bonding package reduces the agency costs. Moreover, if the agency cost declines when the dividend payout does and if the transaction cost of external finance increases when the dividend payout is increased as well, then minimization of these costs will lead to a unique optimum for a given firm. In addition, Hansen, Kumar, and Shome [HKS], (1994) pointed out the relevance of the monitoring theory for explaining the dividends policy of regulated electric utilities. From an agency cost perspective, they emphasized their ideas that the dividends promote monitoring of what they call the shareholders regulator conflict. Therefore, it is a monitoring role of dividends. On the contrary, Easterbrook’s (1984) has noted that the dividends monitoring of the shareholders managers conflict. They also have observed that the utilities firms have a discipline of monitoring mechanism for controlling agency cost, depending on the relative cost effectiveness of those costs (Crutchly and Hensen, 1989). The regulator process will impact the conflict between the shareholders and mangers, by mitigate the managers’ power to appropriate shareholders’ wealth and consume perquisites (Hansen et al. 1994). On the other hand, they argued this issue by the cost-plus concept, regulators may set into motion of managerial incentive structure that potentially conflicts with shareholders interests, this concept solve the shareholders-regulators concept since the sources of the conflict lies in differences in the perceptions of what constitutes fair cost plus. Therefore, the regulation can control some of the agency cost while exacerbating others. In their study, they conduct also that the managers and shareholders of unregulated firms have a several mechanisms whether, internal or external, for controlling agency cost. In addition, they observed that the dividend policy to reduce the agency theory is not limited, depending on their findings they suggested that the cost of dividend payout policy might be below the costs paid by other types of firm. In fact the utilities company maintain high debt ratio that would maintain as well as equity agency costs. Aivazian et al. (2003b) compare the dividend policy behaviour of eight emerging markets with dividend policies in the US firms in the period from 1980 to 1990. The sample included firms from; Korea, Malaysia, Zimbabwe, India, Thailand, Turkey, Pakistan, and Jordan. They found that it is difficult to predict dividend changes for such emerging markets. This is because the quality of firms with reputations for cutting dividends is somehow similar to those who increase their dividends, than for the US control sample. In addition, current dividends are less sensitive to past dividends than for the US sample of firms. They also found that the Lintner model[1] does not work well for the sample of emerging markets. These results indicate that the institutional frameworks in these emerging markets make dividend policy a weak technique for signaling future earnings and reducing agency costs than for the US sample of firms. Furthermore, Omran and Pointon (2004) investigated the role of dividend policy in determining share prices, the determinants of payout ratios, and the factors that affect the stability of dividends for a sample of 94 Egyptian firms. They found that retentions are more important than dividends in firms with actively traded shares, but that accounting book value is more important than dividends and earnings for non-actively traded firms. However, when they combined both the actively traded and non-traded firms, they found that dividends are more important than earnings. In the determinants of payout ratios, they found that there is a negative relationship between the leverage ratio and market to book ratio, tangibility, and firm size on the one hand, to the payout ratios in actively traded firms. On the contrary, they also found that there is a positive relationship between the business risk, market to book and firm size (measured by total assets) to payout ratios in non-actively traded firms. Furthermore, for the whole sample, leverage has a positive relationship with payout ratios, while firm size (measured by market capitalization) is negatively related to payout ratios. Finally, the stepwise logistic regression analysis shows that decreasing dividends is associated with lack of liquidity and overall profitability. In addition, increasing dividends is associated with higher overall profitability. 2.4 Summary In this chapter the relevant literatures addressing the reviews of the agency cost theory related to the financial policies. It also gives a theoretical background on how the conflicts of interests arise between the agents (managers) and the principal (shareholders). The second and third sections present the determinants of leverage and dividend payout policy. The following chapter will go through the description of data, and data methodology was employed for this dissertation. 3. Methodology, Research Design and Data Description The aim of the current study is to investigate firstly, the empirical evidence of the determinants of leverage and dividend policy under the agency theory concept for the period 2002-2007. The majority of the previous studies in the field of capital structure have made in the context of developed countries such as USA and UK. It is important to investigate the main determinants of leverage and dividend policy in developing countries where, capital markets, are less developed, less competitive and suffering from the lack of compatible regulations and sufficient supervision This chapter will explain the research methodology of this study. This chapter also identifies the sample of the study. Moreover, it presents an illustration of the econometric techniques that have been employed. In addition, this chapter gives a brief explanation of the specification tests used in the study to identify which technique is the best for the data set. This chapter structured as follows; Section (3.1) presents data description.  Section (3.2) presents the sample of the study. Section (3.3) discusses the econometric techniques employed in the study. Finally, Section (3.4) provides a brief summary. 3.1 Data Description The data used in the study are secondary data for companies listed at Amman Stock Exchange (ASE) for the period of 2002-2007. The data was extracted from the firm’s annual reports, and from Amman Stock Exchange’s publications (The Yearly Companies Guide, and Amman Stock Exchange Monthly Statistical Bulletins). Data is readily available in the form of CD and on the website of the Amman Stock Exchange. The reason for the study period selection was to minimize the missing observations for the sample companies. Moreover, a different reporting system has been used since 2000. The application of the new reporting system was the result of the transparency act which was launched in 1999, and forced all companies listed in Amman Stock Exchange to disclose their financial information and publish their annual reports according to the International Financial Reporting Standards. In other words, this data series for the period from 2002-2007 was chosen in terms of consistency and comparability purposes. 3.2 Sample of the study The sample of the study consists of the Jordanian Manufacturing companies listed on the Amman Stock Exchange for the period of 2002-2007. The total number of the companies listed in ASE at the end of year 2007 was 215. Officially, these companies are divided into four main economic sectors; Banks sector, Insurance sector, Services sector and finally Industrial sector. Moreover, this study is concerned only with Jordanian manufacturing companies that their stocks are traded in the organized market. It is important to note that the capital structure of financial firms has special characteristic when compared to the capital structure of non financial firms, they also have special tax treatment (Lester, 1995). On the other hand, the financial firms have a higher leverage rate, which may tend to make the analysis results biased. Moreover, financial firms their leverage is affected by investor insurance schemes (Rajan and Zingals, 1995). For these reasons, the potential sample of the study consists of non financial (Manufacturing) companies that are still listed in Amman Stock Exchange. The total number of industrial companies listed in ASE at the end of year 2007 was 88 companies, which are 40.93% of the total number of the companies listed in that market. The study conducts the following criteria in selecting the sample upon the Jordanian manufacturing companies by excluding all the firms that was incorporated after year 2002, and all the firms that have merged or acquired during this period, further, the firms have liquidated or delisted by the Amman Stock Exchange, and finally, the study have also excluded the firms that have information missing for that period. The application for those criteria has resulted in 52 samples of manufacturing companies. The data for the variables that are included in the study models is tested using three different econometric techniques which will be discuss briefly in the next sections. 3.3 Econometrics techniques Hairs et al. (1998) argued that the application of econometrics technique depends on the nature of data employed in the study, and to what extent it would be realised to the research objectives. In order to find a best and adequate data model, the current study employs pooled data technique and panel data analysis which is usually estimated by either fixed effect technique or random effects technique.  The following sections provide a brief discussion on the econometrics techniques that the current study uses to estimate the empirical models. 3.3.1 Pooled Ordinary Least Square (OLS) technique All the models used in the study have been tested by the pooled data analysis technique. The pooled data is the data that contains pooling of time series and cross-sectional observations (combination of time series and cross-section data) (Gujarati, 2003). The pooled data analysis has many advantages over the pure time series or pure cross sectional data. It generates more informative data, more variability, less collinearity among variables, more degrees of freedom, and more efficiency (Gujarati, 2003). The underlying assumption behind the pooled analysis is that, the intercept value and the coefficients of all the explanatory variables are the same for all the firms, as well as they are constant over time (no specific time or individual aspects). It also assumes that the error term captures the differences between the firms (across-sectional units) over the time. However, (Gujarati, 2003) has pointed out that these assumptions are highly restrictive. He argues that although of it is simplicity and advantages, the pooled regression may distort the true picture of the relationship between the dependent and independent variables across the firms. Pooled model will be simply estimated by Ordinary Least Square (OLS). However, OLS will be appropriate if no individual (firm) or time specific effects exist. If they exist, the unobserved effects of unobserved individual and time specific factors on dependent variable can be accommodated by using one of the panel data techniques.   According to (Gujarati, 2003) panel data is a special form of pooled data in which the same cross-sectional unit is surveyed over time. It helps researchers to substantially minimize the problems that arise when there is an omitted variables problems such as time and individual-specific variables and to provide robust parameter estimates than time series and (or) cross sectional data. All the empirical models that have been tested by using pooled data analysis and tested again on the basis of panel data analysis techniques (Fixed Effects and Random Effects).   3.3.2 The fixed effects model (FEM) Fixed effects technique allows control for unobserved heterogeneity which describes individual specific effects not captured by observed variables. According to Gujarati (2003) the fixed effect model takes into account the specific effect of each firm â€Å"the individuality† by allowing the intercept vary across individuals (firms), but each individual’s intercept does not vary over time. However, it still assumes that the slope coefficients are constant across individuals or over time. Two methods used to control for the unobserved fixed effects within the fixed effects model; the first differences and Least Square Dummy variables (LSDV) methods.  For the purposes of the current study, (LSDV) was used where; two sets of dummy variables (industry, and year dummy variables). The additional dummy variables control for variables that are constant across firms but change over time. Therefore, the combine time and individual (firm) fixed effects model eliminates the omitted variables bias arising both from unobserved factors that are constant over time and unobserved factors that are constant across firms. However, fixed effects model consumes the degrees of freedom, if estimated by the Least Square Dummy Variable (LSDV) method and, too many dummy variables are introduced (Gujarati, 2003). Furthermore, with too many variables used as regressors in the models, there is the possibility of multicollinearity. It is worth noting that OLS technique used in estimating fixed effects model. 3.3.3 The Random Effects Model (REM) By contrast, fixed effects model, the unobserved effects in random effects model is captured by the error term (ÃŽ µit) consisting of an individual specific one (ui) and an overall component (vit) which is the combined time series and cross-section error. Moreover, it treats the intercept coefficient as a random variable with a mean value (ÃŽ ±0) of all cross-sectional (firms) intercepts and the error component represents the random deviation of individual intercept from this mean value (Gujarati, 2003). Consequently, the individual differences in the intercept values of each firm are reflected in the error term (ui). On the other hand, the Generalized Least Square (GLS) used in estimating random affects model.  This is because the GLS technique takes into account the different correlation structure of the error term in the Random Effect Model (REM) (Gujarati, 2003). 3.3.4 Statistical specification tests The study uses three specification tests to identify which empirical method is the best. These tests are used for testing the fixed effect model versus the pooled model (F-statistics), the random effect model versus pooled model (Lagrange Multiplier test) (LM), and the fixed effect model versus the random effect model (Hausman test). The following sub-sections offer brief disc

Superfluids and Superconductors :: physics

In 1924, the Indian physicist S. N. Bose developed an alternate law of radiation which modified Planck's laws to include a new variety of particles, namely, the boson. He sent off his theory to Einstein for revision and translation, and Einstein swiftly came up with some additions to the theory. He expanded the laws to incorporate the mass of the boson, and in doing so theorized a strange phenomenon. He predicted that when atoms of a gas came together under cold enough temperatures, and slowed down significantly, that they would all assume the exact same quantum state. He knew that this slow quantum gas would have strange properties, but wasn't able to get much further by theorizing. This phenomenon, which came to be known as a Bose-Einstien condensate, was an incredible leap in quantum theory, but it wasn't demonstrated until 1995 when Eric A. Cornell, Wolfgang Ketterle and Carl E. Wieman made the first Bose-Einstein condensate with supercooled alkali gas atoms. Although this develo pment didn't come until late in the 20th century, many of these strange properties were observed in supercooled He4 by Dr. Pyotr Kapitsa. Helium became the standard for observing superfluid phenomenon, and most new superfluid properties are still observed first in Helium 4. Superconductivity, a similar phenomenon, was discovered in 1911 by Dutch physicist Heike Kamerlingh Onnes. When he cooled some mercury down to liquid helium temperatures, it began to conduct electricity with no resistance at all. People began experimenting with other metals, and found that many tranisition metals exhibit this characteristic of 0 resistance if cooled sufficiently. Superconductors are analagous to superfluids in that the charges within them move somewhat like a superfluid - with no resistance through sections of extremely small cross-sectional area. Physicists soon discovered that oxides of copper and other compounds could reach even higher superconducting temperatures. Currently, the highest temperature at wich a material can be superconductive is 138K, and is held by the compound Hg0.8Tl0.2Ba2Ca2Cu3O8.33. Superfluids all have the unique quality that all their atoms are in the same quantum state. This means they all have the same momentum, and if one moves, they all move. This allows superfluids to move without friction through the tiniest of cracks, and superfluid helium will even flow up the sides of a jar and over the top. This apparant defiance of gravity comes from a special type of surface wave present in superfluid helium, which in effect pushes this extremely thin film up the sides of the container.

Good Education

Advantages of a Good Education What is a good education? Some say a good education consists of going to a good school, and getting a degree. Yes, acquiring a degree is important, but what good is it if it does not leads to good morals. A person can be the smartest person in the world, but if the person’s behavior is bad, the â€Å"good education† never existed. For an education to be deemed â€Å"good†, it has to promote good morals. The good morals are gotten from God’s instructions. A good education is also an education that teaches responsibility.It makes one accountable for the things that happen in their life. It gives one a mindset that he/she does not have to rely on anybody. A good education involves getting a degree and at the same time learning what is morally right in God’s eyes. Advantages of good education include one being able to take care of his family, being able to communicate effectively and respectively, and also it reduces the n umber of birth rates. A good education gives someone the ability to take care of their family.Due to the fact that getting a degree increases the chance for someone to get a high paying job, people do it for the wrong motives. Some people get a good education so that they can be selfish with the money they get with their degree. On the other hand, someone educated to behave morally right would care to take care of the family that they have, and not just him. Even if the job is not high paying, a good education teaches one to show generosity at all time. Another advantage of a good education is that it also gives one the ability to talk effectively and respectively.To have a degree one must have taken English and communication courses that are helpful in improving one’s grammar and communication skills. What good is one’s grammar he cannot hold a conversation with others? A good education makes one able to convey his opinion in an understandable manner. Most people who get their degrees still act disrespectful. These people graduate from colleges that are said to be good, and still use foul language. Is this kind of education â€Å"good†? A good education teaches people to talk to people around them with respect.People with good educations learn of the dangers in using abusive languages at people. A God that is perfectly righteous would not support disrespect in any form. His (God’s) word says in Ephesians 4::29,†Let no corrupting talk come out of your mouths, but only such as is good for building up, as fits the occasion, that it may give grace to those who hear†. Since a good education involves teaching what is morally right in God’s eyes, a person with a good education would not try his best to control his language from being abusive.The final advantage of a good education is that it reduces the number of birth rates. Uneducated men and women are one of the main causes the high numbers in birth rate. These unedu cated people cause unwanted births because they are not aware of the danger of sex. Sex is not morally bad, but if it is not with a spouse it is a sin. A good education, since it goes according to the word of God, gives people the awareness that sex before marriage is a sin. The bible tells us that God will judge those who are sexually immoral.A good education therefore In conclusion, all these advantages to a good education can all be taught through the word of God (Bible). In addition, knowing all these actions mean nothing if they are not practiced. A person can know that they should take care of their families, talk respectively, and abstain from sexual immorality, but it does not mean the person will do these things. Someone might want to do this, but human nature makes the person do otherwise. A good education gives knowledge, but one is in charge of being practically wise.

Losing Common Sense in a Sea of Technology Essay

Technology has made miracles take place. Technology is an asset to our society. Things we could not do with our anatomical brains we can conjure up with a machine. With the answers to simple questions at fingertips with the availability of the internet, simple thought processes replaced with instant gratification. Critical thinking is almost extinct due to rapid response internet websites and databases. In today’s society, we depend on computers and technology to dictate schedules, lead meetings, and manage social lives. Therefore, ruing personal bonds, destroying critical and creative thinking, and losing common sense. The introduction of technology and computers on society has been beneficial in many areas, science having the biggest impact. For example, new radar technology will allow forecasters to see extreme weather, as will potential improvements to satellite technology, as well as computer models that run on powerful super computers. With these radars improved, more lives saved. â€Å"This will allow us to get to cover faster and be better prepared† (Lubchenco, Hayes 68). Another example of how technology has been beneficial to our society is in the medical field. Today many surgeries perform with the help of robots. Robotically assisted cardiac surgery presents less invasive than conventional surgery, with shortened hospital stays and faster return to daily activities (Krueger, Jones, Howell, etal. ) The largest benefit of technology is the easy and fast access that has come from the Internet. Almost any subject matter, research papers, and technical documents are available to anyone. Communication has also become much simpler using the Internet. Computers and the internet has become a staple in the American home. Not only are Americans conforming to an E-society, the rest of the world is too. This intention of this paper is not to discourage technology. Technology has done the unimaginable in societies here and abroad, perhaps technology has done too much. As we advance in the small gadgets and upgrade our systems to use the latest software, it is safe to say, we have become â€Å"addicted†. Because of this â€Å"addiction† or dependency on technology and computers, more and more people are flooding to their P. D. A’s or to their laptops to do simple everyday tasks; we should know how to do already. Anything from grocery shopping, booking a plane flight, depositing a paycheck, can be done over the internet from a personal computer, cell phone, or I Pad. Life as we know it is becoming a virtual reality within itself. We focus our addenda’s and our itineraries based around technology. Despite the positive impact technology has made on education, there are certainly areas that it poorly used. â€Å"The uncontrolled use of technology without examining its long-term benefits and potential problems is not something that should be allowed to happen in education. (Hodorowicz) For example, more and more often universities are moving toward â€Å"distant learning†, or online classes. â€Å"Nothing can replace the interactions between students and teachers. Once the process of learning from a fellow person has been automated to something mechanical many things will be lost† (Hodorowicz). Furthermore, automated grading loses the ability to see just where a student went wrong, or what the student was trying to achieve in an answer. Online courses remove the ability to deal with truly great teachers in a personal way, and it removes the ability to interact with other students. Automated education also hinders getting help when needed. It has been noted that with the use of computers and technology â€Å"education will no longer be an unpredictable and exciting adventure in human enlightenment, but an exercise in conformity and an apprenticeship to whatever gadgetry is useful in a technical world† (Schwarz). Technology has also been useful inside the home. yet, has been a key factor in the decline of stable, social relationships. Researchers are debating whether the Internet is improving or harming participation in community life and social relationships. This research examined the social and psychological impact of the Internet on 169 people in 73 households during their first 1 to 2 years on-line. We used longitudinal data to examine the effects of the Internet on social involvement and psychological well-being. In this sample, the Internet was used extensively for communication. Nonetheless, greater use of the Internet was associated with declines in participants’ communication with family members in the household, declines in the size of their social circle, and increases in their depression and loneliness (Kraut, Patterson,Keisler,etal. . Virtual communities are becoming an ever-growing normality. With the social networks like Facebook and twitter comes the anonymous predators. † The Internet is populated by people with false identities, people with inaccurate information, people who express themselves quickly and with little reflection or sense of accountability† (Schwarz). New frauds and ill opportunities to drain bank accounts emerge daily; just an example of how we are coming adapt to the cyber world with our eyes wide open. We are losing what it means to be human and the morals that were once instilled. As stated earlier in this paper, this is not a paper of whether technology in our world today is right or wrong. This is a paper proving how our ethical values and use of common knowledge are becoming extinct because we allow computers to think for us. We are losing creativity to think â€Å"outside the box† with our learning becoming more of a mathematical equation than an experience. Relying too much on technology is what will lead to the extinction of man, maybe not of a species, but of an individual, rather than random avitar. Works Cited Schwarz, Gretchen.

Course Reflection Example

Course Reflection Example Course Reflection – Coursework Example Reflection This on nursing theories was a handful as it was particularly informative and interactive. Notably, thiscourse offered me a theoretical foundation for practicing nursing. I learnt that theories delineates and augments nursing practice and that it focusses on matters imperative to offering care (Basavanthappa, 2007Through this course, I learnt that theory is a systematic and creative way of viewing the world and its facets in order to describe or control it (McEwen grand theories, middle range theories, and borrowed theories (McEwen & Wills, 2014). Through this course, I can apply nursing theories to my Home Health Care and Dialysis Nursing practice. I will use nursing theories to evaluate the patient’s conditions and identify the distinct needs of the patient through Watson’s theory of caring (Kozier et al., 2004). I will also employ this theory to create effective relations with the patient and assess the degree to which the nursing process was successful. Before joining the course, I did not have many thoughts about the existence of theory and application of theory to solve nursing issues. For instance, I initially did not understand that there are various facets that need to be taken into account before administering self-care in patients. It is after this course that I learnt nurses have to evaluate the patient’s motivation and ability to perform self-care (McEwen & Wills, 2014).ReferencesBasavanthappa,  B.  T. (2007). Nursing theories. New Delhi: Jaypee Brothers. Kim,  H.  S., & Kollak,  I. (2006).Nursing theories: Conceptual & philosophical foundations. New York, NY: Springer Pub. Co.Kozier, B., Erb, G., Berman, A., & Synder, S., (2004). Fundamentals of nursing: Concepts, process and practice. New Jersey:Pearson Education.McEwen, M., & Wills, E. (2014). Theoretical basis for nursing (4th ed.). Philadelphia, PA: Wolters Kluwer/Lippincott Williams & Wilkins.

Annotated Reference List Example

Annotated Reference List Example Annotated Reference List – Article Example Annotated Reference List Bendeman, Hanneli. "Alternative Dispute Resolution (ADR) in the workplace - the South African experience". African Journal on Conflict Resolution 7, no. 1 (2007): 137-161The journal takes a look at how South Africa is embracing the path of Alternative Dispute Resolution. According to this journal, the way out is to continue exploring the possibility of all alternatives that can dispense justice to all. Labor courts are used for resolving serious issues like unfair dismissal, strikes, and discrimination at workplaces.Conflict Resolution Quarterly 31, no. 4: (2014): 357-386. The journal talks about the processes of resolving conflict at workplace. The processes have permeated many organizations in North America for the past thirty years. According to the author, arbitration and mediation processes were the first ones to be used in organizations. This article takes a look at the trends in workplace conflict management and the ADR education and proposes where the field should be in the coming years. Chambliss, Daniel F. and Russell K. Schutt. Making Sense of the Social World: Methods of Investigation. Los Angeles: Sage, 2003. The book is a student-friendly and engaging introduction to the social research for students. It gives a balanced coverage of qualitative and quantitative methods, providing substantive examples and some research techniques. It covers all essential elements of research methods, including causation, validity, and techniques of analysis. Cloke, K., and Goldsmith, J. Resolving Conflicts at Work. San Francisco: Jossey-Bass, 2000. Cloke and Goldsmith state that every conflict at workplace produces an emotional response. However, most workplaces as well organizational cultures require the workers to check their emotions when they enter their workplace or leave the emotions at home. According to this book, workers can temporarily hold back their emotions, but they cannot eliminate them completely. Coates, Mary Lou, Gary T. Fu rlong, and Bryan M. Downie. Conflict management and dispute resolution systems in Canadian nonunionized organizations. Kingston, Ont: IRC Press, 1997. The purpose of this book is to develop a better understanding of the conflict management and dispute resolutions in the nonunionized workplaces in Canada. It tries to examine the role of conflict management and dispute resolution. It also takes a look at how employers are managing and resolving conflicts within their organizations.Colvin, Alexander J.S. "American workplace dispute resolution in the individual rights era". The International Journal of Human Resource Management 23, no. 3 (2012): 459-475. This article gives a theoretical conceptualization of the increase of alternative dispute resolution and the impact it has on the American employment relations in the individual rights era. It further examines the question of whether the new individual rights employment rights-based system has replaced the old one.Dickinson, David. Alte rnative dispute resolution. IZA World of Labor, (September 2014): 71. The article talks about the alternative dispute resolution procedures. It produces procedures such as mediation and arbitration as the best ways of resolving contract, wage, and grievance disputes. However, the procedures lead to changing levels of success and acceptability of the results depending on their design.References Bendeman, Hanneli. "Alternative Dispute Resolution (ADR) in the workplace - the South African experience". African Journal on Conflict Resolution 7, no. 1 (2007): 137-161.Conflict Resolution Quarterly 31, no. 4: (2014): 357-386. Chambliss, Daniel F. and Russell K. Schutt. Making Sense of the Social World: Methods of Investigation. Los Angeles: Sage, 2003. Cloke, K., and Goldsmith, J. Resolving Conflicts at Work. San Francisco: Jossey-Bass, 2000.Coates, Mary Lou, Gary T. Furlong, and Bryan M. Downie. Conflict management and dispute resolution systems in Canadian nonunionized organizations. King ston, Ont: IRC Press, 1997. Colvin, Alexander J.S. "American workplace dispute resolution in the individual rights era". The International Journal of Human Resource Management 23, no. 3 (2012): 459-475.Dickinson, David. Alternative dispute resolution. IZA World of Labor, (September 2014): 71.

The Skills That Will Get You Hired in Administration [Infographic]

The Skills That Will Get You Hired in Administration [Infographic] Todays administration requires many skills.  If youre looking to get hired   in administration and one of its many fields, then here is some important information you need to know.Weve compiled an infographic detailing important skills that you need in order to be hired as a administrative professional.  Check it out below:

The roll of a judge is similar to that of a referee Essay

The roll of a judge is similar to that of a referee - Essay Example In a game, the referee controls the proceedings, making sure that the players follow all the rules of the game, and that they play it within the scope and gamut of the rules. Similarly, in court proceedings a judge plays the pivotal role of applying and interpreting the laws and resolving disputes arising under them. Thus, it can be stated that the role of a judge is similar to that of a referee. Every game has a set of rules, which dictates how the game will be played. When it is being played between two different players or teams, disputes may arise. Therefore, someone has to supervise the game and intervene when a rule is broken, to ensure that it is played in a fair manner and the participants follow stipulated rules. The judge functions in a similar way under the judicial system to ensure that the laws are followed and justice is served to the parties involved without bias and prejudices. It is incumbent upon both the judge and the referee that they avoid discrimination, and promote equality. In order to be effective in their roles both have to possess an in-depth knowledge of the relevant rules and should be in a position to explain the rules if questioned. This makes the role of a judge comparable to that of a referee because they judge a game in the context of the rules governing it and assess penalties or award punishments for violations. In order for a judge to be effective in his role of safeguarding justice he should be able to act independently outside of any influences so that he can carry out the verdict within the limits of the law, and hand down a judgment that meets the ends of natural justice. The Constitution of every democratic country recognizes the independence of judges by guaranteeing them liberty to take decisions and making the judicial branch as a separate entity distinct from other branches of the government. Judges interpret laws and make decisions but they don’t impose their

Assessment Instrument for Assessing Autism Term Paper

Assessment Instrument for Assessing Autism - Term Paper Example This suggests that a system for eliciting parental views should be built into any assessment tool for autism, and that extra language support for non-native speakers of Spanish or English should be provided to ensure that this group is not left behind. There is a wealth of knowledge that parents can contribute if a method can be found to elicit their views and record them in a consistent and comparable way. Parallel to the input of parents, there is the standard procedure of child development screening carried out at specified stages during health and educational interactions. The BRIGANCE Standard Diagnostic Comprehensive Inventory of Basic Skills (Glasgoe, 1999) was first devised in the 1970s and has been refined and extended since then to cover a wider age range and a more clearly defined set of criteria. In its present form, it is widely accepted as a good standard instrument which allows both effective local assessment and wider collation of results across the United States which can be used to build a picture of changes in the patterns of child development as they emerge. This test certainly does pick up significant numbers of cases for further investigation but it is not specifically designed to screen for autism. Parents and broad-based standard testing are therefore a crucial first line and very basic level of screening which are effective for the majority of children. A screening instrument in the UK for very young children around 18 months of age called the â€Å"Checklist for Autism in Toddlers† or simply â€Å"CHAT† has a series of yes/no questions. The questions in section one are general, such as â€Å"does your child enjoy being swung, bounced on your knee† and these are answered by the parent.  

Nuclear Power in the US Essay Example | Topics and Well Written Essays - 750 words

Nuclear Power in the US - Essay Example Nuclear power is generated by a chain reaction of atom, which is the minute particle that cannot be further divided. They are the â€Å"building blocks† of every single thing that exists from a human to a chair. Atoms are made up of electrons which have negative charge, circling nuclei consisting of protons and neutrons. Protons are positively charged while the neutrons are neutral that is they are not charged. There are some elements whose atoms are unstable atoms. Such unstable atom’s nucleus tends to break and form a stable atom. In doing so, they emit enormous energy which eventually produces heat. Such elements having unstable atoms are called â€Å"radioactive elements†. Before forming a stable atom, the nucleus hits other atoms after its breakage forming a chain reaction. This chain reaction is called â€Å"nuclear fission†. The most commonly known among radioactive elements is uranium. (Morris, 2007) The process of making nuclear power starts with the mining of radioactive elements which are then processed accordingly. The processed radioactive elements are then fed to the reactors of nuclear power plant, generating a chain reaction or â€Å"nuclear fission† which eventually creates heat. This heat turns the water inside the plant to steam. The steam produced through this whole process is then used to generate energy in the form of electricity or is used to power steam turbines. The usual sources of energy i.e. fossil fuels which are formed from the remains of animals and plants are coal, oil and natural gas (Benduhn, 2009). The main reasons for their preference is their convenient availability and low cost. Yet both these reasons are no more applicable as being natural reservoirs they are not renewable. Hence, these sources are decreasing day by day and their prices are hiking up due to their shortage. In addition, their burning is the major cause of pollution eventually leading to health and environmental hazards. It is also the main concern of environmentalists as many of them believe that burning of these fuels is among the many factors creating global warming. Carbon dioxide is among the main emissions from these burned fossil fuels which is creating global warming as it creates the effect of a greenhouse, by keeping the heat trapped thus disturbing the whole atmosphere from land to air and oceans. (Hantula et al 2010) Nuclear Power, on the other hand is a reliable source of energy. The main advantage of nuclear power is that it neither emits gases that create greenhouse effect nor produces soot. Therefore it can be considered somewhat eco friendly. In addition, the quantity of wastes produced by nuclear power is very small and can be disposed off easily. Another fact that makes nuclear power more effective is that a very small quantity of a radioactive element is sufficient as compared to coal that produces same amount of energy. Though it is also not a renewable source of energy, yet the q uantity required to make energy is so small that its reservoirs will benefit generations after generations. Countries like America and France are benefiting from nuclear power by producing electricity through it. Around 435 nuclear reactors in more or less 30 countries of the world were producing 15 percent of the world’s electricity in the year 2009. (Hantula et al 2010)

Patient-Physician relationship Assignment Example | Topics and Well Written Essays - 1250 words

Patient-Physician relationship - Assignment Example This sets humans apart from any other animal that humans may use as commercial commodities. This way, Kant sets humans apart thereby influencing the formation of ethical values. â€Å"Human beings are above any price† is a phenomenal explanation in Kant’s explanation of human dignity. As explain earlier, Kant argues that human life is special and has value that sets it apart from any other form of life on earth. Other animals both wild and domestic have life just as humans. However, they lack dignity. Humans on the other hand occupy a dignified position in the society and have authority over other animals. As such, humans can use the other animals as commercial commodities thereby obtain financial benefits. However, a human can never use another as a commercial commodity owing to the similarity in the value of human life. This therefore limits human interactions since each human has a dignity. Personalism is a fundamental school of thought in philosophy that explains th e uniqueness of God and that of humans. The concept of personalism compares humans to other animals and establishes that humans are superior beings that have both dignity and free will. The two are fundamental features in humans that help set them apart from other animals thereby establishing the relationship that humans have with God, the creator. Self-consciousness is a unique human feature that influences human activity and their pursuit for happiness. The concept of personalism is therefore important in the formulation of ethical principles.

Global performance and corss culture management of Home Depot 04259 Essay

Global performance and corss culture management of Home Depot 04259 - Essay Example The company started its operation with first two stores in Atlanta, Georgia in 1979 and currently has more than 2200 stores throughout United States, Canada, Mexico, and China. By the end of the 2015 (first quarter), the Home depot company will have 293 international operations that collectively represent 12.9% of the total store base of Home Depot. In Canada, the Company has around 182 stores in 10 provinces of Canada. Additionally, the local number of associates in Canada will reach around 28,000 by the same time. The In Mexico, Home depot has around 111 stores while the number of associates in Canada exceed by 9,000. Both locations has retail facilities spread across from 60,000 to 150,000 sq foot (Corporate Homedepot, 2015a). Home depot is among the leading player in the home improvement industry. Home Depot with 58 percent rake of an annual revenue in United States and going to expand in Mexico (Malkin, 2014). It earns more than 95 percent of its revenue; international sales represent 11 percent of the sales of Home Depot (Soni, 2015a). The operations are spread across 2200 stores throughout United States, Canada, Mexico, and China. The operations of the company include selling wider hodgepodge or mixture of home improvement products, building material, and garden and lawn products; Company offers several services to its customers. The operations of Home Depot targets three sorts of customers. Professional customers, do-it-yourself customers and do-it-for-me customers are the target customer around which the operations of the company revolve (Soni, 2015b). For quality and innovative products and services, the company sourcing is spread to India in addition to above three markets (Corporate Homedepot,201 5b). By 2019, the global industry of home improvement retail stores is expected to arrive at $ 2291.6 billion as a result of increased

A Distance is a Distance Essay Example | Topics and Well Written Essays - 1000 words

A Distance is a Distance - Essay Example For the past two years you have both set aside intimacy and closeness in hopes of building a more secure future to rest your relationship on. This is admirable and can also be economically pragmatic. Getting your career and education on the right path will certainly add to your ability to have a relationship and family down the road. However, in your special case it is preventing you from having a relationship now. You and your wonderful Mr. Right would benefit from deciding not if you want a relationship, but what kind of relationship you want this to be, and realize that you are just starting out to build something with him and the closeness you have now may not be as close as you think.The first thing you need to do Jamie is to appreciate the fact that you are making decisions based on the wonderful alternatives you and your boyfriend have. You are not being forced to choose due to financial or health reasons. You are faced with the much sought after dilemma of, 'You can't have ev erything because you would have no place to keep it'. You are trying to decide about the best of the good. Having said that, you both need to sit down and evaluate where you are in your current relationship. If your current arrangement is based on phone calls and rushed weekend get-togethers, then you need to understand that that is what is at risk. You are not giving up a lifetime of familial bliss because you currently do not have that. You are passing up the opportunity to be intimately close with this fellow now and what ever you choose outside the status quo will sacrifice that arrangement. After you examine the relationship you currently have with a realistic lens, you can begin to weigh your other options against it. One option that you have open to you is to keep the relationship as it currently is. You have expressed your desire to take the relationship to the next level and have indicated that this long distance arrangement just won't make it any longer. Any distance between a couple is far too great. You and your boyfriend need the close personal contact and intimacy that is a part of a partnership to make your love work for you. If you delay that, you risk having to make a decision in the future based on desperation or an ultimatum. Trying to make flexible arrangements in a long distance relationship is fraught with treachery. Some couples have tried allowing limited dating by the other person in their absence, or other compromises, but these have a great risk of destroying what you already have. Since the current arrangement can't continue for you, you need to l ook at the other alternatives you have available to you. If you do in fact decide that you simply can't continue in a long distance relationship, there are only two choices for you to make. Decide to make some concrete changes to stay together, or accept it that there is a geographical difference that can not be overcome and that distance will be reflected in your relationship. If you both choose career over your relationship, then you would do well to accept that for exactly what it is. We all have relationships that work over great distances, but they are not intimate and don't involve the lifelong sharing of a marriage. Choosing your careers will mean that you are probably giving up any hope of a future family with Mr. Right, but it will present you the opportunity to have a lifelong friend who has shared some common struggles with you. He will probably be successful and a valuable asset to your future. But he may not ever become your soul mate or marriage partner. Don't be too deluded into believing that you can both go about your business, him with his career and you with