Childhood Play Behavior and Cognitive Development Essay -- Child Deve

Childhood trick behavior is an important part of every tykes life. Starting in infancy, baberen begin to explore their world done gather. This behavior can serve as an indicator of the childs cognitive and social development. The research on play and development is a key to helping caregivers understand the importance of childhood play. This paper will focus on the psychological aspects of childhood play behavior and its relation to cognitive development. According to the cognitive development theory, the purpose of play is to develop intelligence. While children play, it is theorized that they are capable to learn to solve problems (Wyver & Spence, 1999). One of the most influential contributors to understanding play was Jean Piaget. According to his theory, all people must adapt to the environment through assimilation and accommodation. Childhood play is a form of assimilation and any behavior that is done for enjoyment can be defined as play (Piaget, 1 962). Piaget also developed the stages of cognition these include sensorimotor, pre-operational, concrete operational, and formal operational thinking. These stages of development provide a framework for conceptualizing childhood behavior and are do evident through play (Tsao, 2002).As children grow and mature, they transition through Piagets stages of cognitive development and their type of play changes. Up until a childs second birthday, they are in the sensorimotor period of cognitive development. This phase of development is classified as a period of observation. These children engage in sensorimotor play, also known as practice play, which consists repetitively doing a physical activity. According to Piaget, this is the first stage of ... ...iversity Press.Hyun, E. (1998). Making sense of developmentally and culturally appropriate practice (DCAP) in early childhood education. New York Peter Lang. Chapter 2.Kaufman, A. Barbara (1994). Day by day Playing and learning. Int ernational Journal of Play Therapy, 3 (1), pp.11-21.Phelps, P., & Hanline, M. (1999). Lets play blocks Creating effective learning experiences for young children. Teaching Exceptional Children, 32(2), 62-7. Piaget, J. (1962). Play, dreams and imitation in childhood. New York Norton.Tsao, L. (2002). How much do we know about the importance of play in child development?. Childhood Education, 78(4), 230-3. Retrieved from OmniFile Full Text Mega databaseWyver, S., & Spence, S. (1999). Play and divergent problem solving Evidence supporting a reciprocal relationship. proterozoic Education and Development, 10(4), 419-444.

Beluga Whales :: essays research papers

A. Swimming. 1. In general, beluga whales are slow gomers. They commonly swim about 3 to 9 kph (1.9-5.6 mph). They are, however, capable of sustaining a maximum speed of 22 kph (13.6 mph) for as long as 15 legal proceeding (Nowak, 1991 Ridgway and Harrison, 1981). 2. Belugas can swim forward and backward (Nowak, 1991). 3. Beluga whales often swim at depths barely covering their bodies (Ridgway and Harrison, 1981). B. Diving. 1. Beluga whales typically dont dive very deep, normally to about 20 m (66 ft.). Belugas are not generally thought of as deep-diving oceanic mammals, but they are capable of diving to extreme depths. nether experimental conditions a trained beluga whale repeatedly dove to 400 m (1,312 ft.) with ease, and even dove to a depth of 647 m (2,123 ft.) (Nowak, 1991 Ridgway et. al., 1984). 2. A typical dive usually lasts three to five minutes, but belugas can stay submerged for as long as 15 minutes (Nowak, 1991 Ridgway and Harrison, 1981). 3. In estuaries the usual diving sequence lasts about two minutes the sequence consists of five to six shallow dives followed by a one-minute-long deeper dive (Ridgway and Harrison, 1981). 4. All marine mammals project physiological adaptations for diving. These adaptations enable a beluga whale to conserve oxygen while its under water. a. Beluga whales, like other marine mammals, have a slower heart rate while diving. A beluga whales heart rate slows from about 100 to about 12 to 20 overcome per minute during a dive (Ridgway, 1972).b. When diving, line of business is shunted away from tissues tolerant of low oxygen levels toward the heart, lungs, and brain, where oxygen is needed.c. Beluga whales retain more oxygen in their blood than most mammals do. A beluga whales blood volume percentage (5.5%) is higher than a land mammals, and similar to a Weddell seals (a deep-diving marine mammal). One study imbed a female beluga to have 16.5 l (17.4 qt.) of oxygen in her blood (Ridgway et. al., 1984).d. The mus cle of beluga whales has a high content of the oxygen-binding protein myoglobin. Myoglobin stores oxygen and helps bar muscle oxygen deficiency.C. Respiration. 1. A beluga whale breathes through a single blowhole, a modified nasal opening. a. The beluga whale holds its breath while under water.b. It opens its blowhole and begins to exhale just before reaching the surface of the water.c.

Gun Control Laws Will NOT Reduce Crime Essay examples -- Gun Control E

Some people believe that extremely tight gun operate on laws will eliminate crime, but gun control laws scarce prevent the good guys from obtaining firearms. Criminals will always have ways of getting weapons, whether it be from the black market, cross borders, or illegal street sales. New gun control laws will not stop them. Since the shootings of Columbine High School, Virginia Tech, and Sandy Hook, the frequency of mass shootings has increased greatly. Gun control is not effective as it has not been shown to actually reduce the number of gun-related crimes. Instead of go steadying a ban of private firearm possession, and violating individual ownership compensates, it may be more practical to consider the option of partially restricting firearm access.The second amendment of the U.S. Constitution states that A well regulated Militia, being necessary to the security of a free State, the right of the people to keep and bear Arms, shall not be infringed(The Constitution of the Un ited States, Amendment II). This means that citizens of the United States have the right to privately own and possess firearms. However, this has created dispute because some believe that there are many who abuse this right to commit criminal acts. Some believe that this amendment only applies to the eighteenth century lifestyle when the United States was under British control. A collective rights theory asserts that citizens do not have an individual right to possess guns and that local, state and federal legislative bodies therefore possess the authority to regulate firearms without implicating a constitutional right.During the 111th Congress, the gun control debate was looked into by two key Supreme Court decisions. In District of Columbia v. Hel... ...duction of Crime. Texas Review of Law & Politics 8.1 (2003) 175-87. Academic Search Premier. EBSCO. Web. 15 June 2015.Martynenko, Natalia, and Eduard Martynenko. Advantages and Disadvantages of Confiscating Property as a Crimina l Law Measure. Internal surety 3.1 (2011) 225-30. Criminal Justice Abstracts with Full Text. EBSCO. Web. 15 June 2015.Moorhouse, John C., and Brent Wanner. Does Gun assert Reduce Crime or Does Crime Increase Gun Control? CATO Journal 26.1 (2006) 103-24. Academic Search Premier. EBSCO. Web. 15 June 2015. Second Amendment. Legal Information Institute. Cornell University Law School, n.d. Web. 10 June 2015.Wodarz, Dominik, and Natalia L. Komarova. Dependence of the Firearm-Related Homicide Rate on Gun Availability A Mathematical Analysis. PLoS ONE 8.7 (2013) 1-13. Academic Search Premier. EBSCO. Web. 15 June 2015.

Letter to State Official On Gay Rights :: essays research papers

Dear Mr. GovernorSince I was in third grade, I have learned that there atomic number 18 authorized inalienable rights, the right to life, liberty and the pursuit of happiness, all of which the United States government is committed to protecting for every human being. I understand that you allow soon have the opportunity to look at a bill which would allow gay marriage to be legalized, and I ask you to not disallow this bill, but to support these inalienable rights to which every American is due. Whatever happened to all men are created equal? It seems to me that the people of America have a certain standards to the all men part of that statement, which is, that they need to be heterosexual in order to be considered for being treated equal. Americans are so proud of their granting immunity and their liberty, yet they are so anxious to take that same freedom away from someone else. Why cant we take that statement for what it is, and graduation exercise treating everyone equa lly regardless of his or her race, gender, or sexual preference? Homosexuals should be entitled to all the same rights as heterosexuals have. They are no different than the suspire of us, they simply choose to practice there intimate life in a different way. What is marriage? Recently, people argue with respect to the definition of marriage. To chafe married is a very important event for almost everyone, it is often considered to be one of the single most important decisions and days of ones life. However, what would you do if you could not get married to the person that you loved because it was socially unacceptable and the law would not allow it? Sometimes it seems as if we are reverting back in history when interracial marriages were the topic of discussion, people were against interracial marriages because they did not understand. Now, people are against same-sex marriages for the same reasons. The United States is denying two people who love each otherwise the right to legally be married. Gays and lesbians are just like heterosexuals, they want there marriages to be recognized by the law. They are like any practice couple and want a marriage to prove and show their love for one another. They want that simple document that the government gives to heterosexuals which binds two people into a marriage.

Power Relationships in Hughess Father and Son and Lawrences The Prussian Officer :: Essays Papers

Power Relationships in Hughess military chaplain and Son and Lawrences The Prussian policemilitary personnelThere are many homogeneousities in plot and theme in Langston Hughes Father and Son and D. H. Lawrences The Prussian Officer. While each story is told in a very different style, the general tone is similar in each. The focal point in each story is a relationship amongst one man in power, and another man who is a subordinate. The dominant man has generally benevolent feelings towards his subordinate, information which is related to the reader through an wise narrator. Due to societal influences, the man in power suppresses this emotion not only from others, but from himself. This suppression later erupts into violence. Colonel Tom (Father and Son) feels regard for his illegitimate black son, whereas the Prussian officer (The Prussian Officer) harbors a homoerotic attraction to his orderly. These feelings are socially unacceptable to the point that neither man is capable of admitting this attraction even to himself. A description of oppressive heat occurs in both, increasing the feeling of futility of the younger mans struggle. The characters seem locked into their situation, and fairish as the heat is unavoidable, so is the conflict. The feeling that the dominant male is hiding a secret from those around him is more explicitly stated in Father and Son. From the very beginning, the narrator informs the reader that Bert is Colonel Toms son. Today his youngest son was coming home.Bert was coming home (Hughes, Father 599). This occurs before the reader realizes that in that location is a problem in the relationship that Bert is illegitimate and has a black mother. Additionally, Colonel Tom is hiding his interest, and even pride in this boy who is so similar to him in appearance Hes too damn much desire me, the Colonel thought. Quick as hell.Well, anyway, he must be a smart darkie. Got my blood in him (Hughes, Father 601). On the other hand, in The Prus sian Officer, there is more of an implied denial of the feelings the officer is harboring for his orderly because the officers homoerotic attraction is never explicitly stated Gradually the officer had become aware of his servants young, vigorous, unconscious presence about him.It was like a warm flame upon the older mans tense, rigid body.And this irritated the Prussian. He did not choose to be touched into support by his servant (Lawrence, Prussian 3).

Power Relationships in Hughess Father and Son and Lawrences The Prussian Officer :: Essays Papers

Power Relationships in Hughess get down and Son and Lawrences The Prussian police homosexualThere are many identicalities in plot and theme in Langston Hughes Father and Son and D. H. Lawrences The Prussian Officer. While each story is told in a very different style, the general tone is similar in each. The focal point in each story is a relationship in the midst of one man in power, and another man who is a subordinate. The dominant man has generally benevolent feelings towards his subordinate, information which is related to the reader through an wise narrator. Due to societal influences, the man in power suppresses this emotion not only from others, but from himself. This suppression later erupts into violence. Colonel Tom (Father and Son) feels tenderheartedness for his illegitimate black son, whereas the Prussian officer (The Prussian Officer) harbors a homoerotic attraction to his orderly. These feelings are socially unacceptable to the point that neither man is capable of admitting this attraction even to himself. A description of oppressive heat occurs in both, increasing the feeling of futility of the younger mans struggle. The characters seem locked into their situation, and fitting as the heat is unavoidable, so is the conflict. The feeling that the dominant male is hiding a secret from those around him is more explicitly stated in Father and Son. From the very beginning, the narrator informs the reader that Bert is Colonel Toms son. Today his youngest son was coming home.Bert was coming home (Hughes, Father 599). This occurs before the reader realizes that in that location is a problem in the relationship that Bert is illegitimate and has a black mother. Additionally, Colonel Tom is hiding his interest, and even pride in this boy who is so similar to him in appearance Hes too damn much interchangeable me, the Colonel thought. Quick as hell.Well, anyway, he must be a smart darkie. Got my blood in him (Hughes, Father 601). On the other hand, i n The Prussian Officer, there is more of an implied denial of the feelings the officer is harboring for his orderly because the officers homoerotic attraction is never explicitly stated Gradually the officer had become aware of his servants young, vigorous, unconscious presence about him.It was like a warm flame upon the older mans tense, rigid body.And this irritated the Prussian. He did not choose to be touched into animation by his servant (Lawrence, Prussian 3).

What changes are planned for Portobello road in the near future?

After investigating how Portobello road was like 10 years ago, how it is like today and why these changes have occurred, there is a noticeable rural area design pattern that is changing as technology develops and more improvements are proposed by the council. unmatchable of the main goals for the government is to bring down the unemployment rates to at a lower place the average in inner London (see figure on page ) in regularise to achieve the goal, the council are going to offer a render up to a maximum of i300 to each person aged 25 and over, this provide enable them to purchase both items which are required in their phone line descriptions such as tools or clothes for interviews.The kingly borough are too planning to organise a youth training centre which delivers NVQ levels 1 and 2, literacy, numeracy and cite skills qualifications, and are hoping to offer skills training to 16- 18 year olds, many of whom have no educational qualifications. Although these solutions m ay tackle the problem of unemployment, it is not guaranteed that everyone will use the grant given, to purchase work items, and as a go forth a lot of money will be wasted. The council also want to offer the royal borough a better quality of life, by making the area cleaner, dearr, healthier and more draw outive as a place in which to live and work.One of the ways in which to do this would be to for the council to keep its own detrimental impacts on the environment to the lowest practical levels. The environmental services de resolvement are also aiming to improve street cleansing and improve allot waste collection services. It aims to get 60% of businesses involved in recycling by 2003. It is also piloting a cycle delivery scheme in Portobello road. All these improvements will improve the quality of life for residents and will also increase tourism, which will be financially, a benefit to the trade on Portobello road.Above were the general improvements being proposed for the wh ole borough, but is more useful to study the improvements being proposed for the 3 main naval divisions of Portobello road. Proposed improvements for the Northern member of Portobello road (Goldbourne ward) One of the proposals for this area is to make this part of the road a one way southbound in order to avoid congestion, heavy traffic, noise pollution and gas emissions, and so reducing the number of accidents, and therefore increasing the safety for pedestrians. Hopefully this proposal will attract more visitors and there will be more trade.The council also intend on better the maintenance of shops, so they look more attractive and visible, and therefore gain more passing trade (mostly from tourism). However this approach may prove to be a disadvantage, as the increase in tourism would result in conflict between local residents and tourists and so resulting to high disgust rate. The third proposal that will be put forward by the council, concerning this part of the road is t o improve street lighting and ensure that brighter lighting will reduce the number of car accidents and bring crime rates to a minimum.Finally, improving direction signs and providing simple market maps near tube stations and shops, should encourage more tourists, and deliver them to feel more comfortable finding their way near the area. Proposed improvements for the Central section of Portobello road (Colville ward) The rally section of Portobello road is also in need for improvement, and therefore a number of proposals have been made, taking into cast that this part of the road is dominated by the fruit market and so remains active all week.The first proposal being made to the central section is the removal of on street parking, because the continual presence of traders vans prevent easy access to the shops on the Westside of the street and also provide an additive cover for an on street crime. Also on weekdays pedestrian gives are higher in this section then anywhere else on the road, (as shown in the flow chart fig. 2. 11) so the removal of on street parking on these days at least would provide a more relaxed and attractive obtain environment, which would turnover the general appearance of the area for the better.Another proposal being suggested is to revise a one-way system to reduce traffic, and so avoiding accidents and providing a safe environment for the visitors and pedestrians. In order to encourage more midweek trading the council have also proposed for rotund eight feet by nine fit pitches to trade upon. The council have also made a proposition to start a customer heraldic bearing system, as in the black cab trade, this should hopefully forgo the customers to come forward about any queries involving the market trade, i. . reporting tatty shop fronts, to generally improve the appearance of the area, etc. The main problems caused in this section are linked to the arrival of major chain stores such as Tesco and Woolworths, which are inevit ably continuing to raise standards in their search for more market share, and therefore continuing to grow in number, both in terms of floor space and profits. However any expansion of these major stores must be at the expense of retailers elsewhere, such as shrimpy family businesses.One of the reasons why chain stores are successful is because their range of goods are continually expanding, quality conceal standards are high and customers are allowed to select items of their own choice under a spacious, convenient and comfortable environment. In order to match up to these standards, small businesses will be encouraged to improve the range of goods on offer, provide a high standard of display, increase shopper comfort, introduce a customer complaint system and reduce the level of rubbish on the street.The council will also provide a larger pitch for local stores to trade upon. Proposed Improvements for the Antique section of Portobello road (Pembridge ward) This section of Portobe llo road remains active all weekend, and benefits largely from tourism. Therefore the propositions being put forward by the council have been modelled so that they would not result in a significant reduction in the retail function of this area.The 1st proposal being put forward concerns the issue of on street parking which is usually illegal, this need to be removed in order to relieve pedestrian congestion on Saturdays and give Saturday antique traders the come up to unload and load directly from Portobello road, this should hopefully reduce conflict between drivers and pedestrians, however this would result in parking difficulties for most residents as their spaces would get busy by the large number of customers who wish to park their cars.Restrictions to vehicle access to residents between 10-2pm needs to be enforced in order to remove any possibility of vehicle -pedestrian conflict on Saturday to provide visitors with a spacious, relaxed, car free environment. The council have also proposed to have better pedestrian crossing facilities at Portobello road and west borne grove junction, in order to increase the safety of visitors and other pedestrians. Widening the pavements across the road would provide visitors with a single large through fare with attractive displays of goods on both sides.The council have proposed improvements to street lighting in all three sections of the road, in order to keep crime rates at a minimum and increase the levels of safety. Direction signs and street maps are also up for improvement in order to make them clearer and allow customers to move around freely and so to encourage trade. Promotion and advertisement on all parts of the road have been encouraged, in order to push the road and gain more passing trade.

Hawk Roosting

Hughes was fascinated by the animism of ancient cultures, especially American Indians. Animism is the belief that spirits live inside all the parts of temper. Hughes metrical composition seems to conjure the furious spirit of a kind of Hawk God. In this numbers, Hughes writes in the imagined voice of a shift. The hawk, in other words, is personified. For the sake of simplicity, I will call the hawk he. The hawks tone of voice is proud, arrogant, he thinks of himself as master of his ball. Indeed, like a God, he has power over life and stopping stay.His whole life is spent whatever being in sleep or hunting for prey. And even when he is asleep he dreams of mastering his hunting and killing technique. The physical description the hawk gives of itself, among my hooked head and hooked feet, confirms this obsession. Its weapons, the hooks, are the things that matter most to the tinkers damn. The hawk says that he has no falsifying dream, nor any sophistry within himself, and t hat no arguments assert his rights. Sophistry content false, but clever arguments.In other words then, unlike humans, the maam is free of rules and regulations, it does non have to justify itself to anything or anyone. Imagery Hughes achieves some of his effects in this poem by changing the scale of things. The small hawk imagines itself to be as big as a God Now I prepare Creation in my foot Or fly up and revolve it slowly. It is as if the world is only spinning because the hawks claw turns it looking for its next victim. abidance The poem is set out in six equal, four line stanzas. Unlike Work and Play there is no development or change in form at the block of the poem.Why not? Because the Hawk will not allow change/does not want change. It is happy with the way things are arranged. The world of the hawk is ordered, neat, efficient, controlled, and the form of the poem matches those qualities. The lines are fairly short and many end with full stops. For instance, the four st atements, of apparent facts, in the last stanza all end with full-stops. Do the full-stops suggest ends, finality, death and in this poem certainty? Certainly the factual tone and the end-stopped, full-stopped lines suggest the hawk would not put up with any arguments.The combined effect is menacing. Summary Subject Hughes personifies a hawk. He describes it as a survivor and a killer. He compares the hawks freedom to act on mind with the way we are ruled by thoughts, arguments and regulations. ATTITUDE The hawks attitude is arrogant its tone is menacing, confident, absolute, and boastful. The hawk sees itself as like a king, or a paragon or an executioner. Hughess attitude is more difficult to tell. He leaves the poem open for the reader to decide on how to react to this fierce spirit.Could we just laugh at the small hawks grand deluded view of itself? Style Almost every image refers to the hawks control and confidence. Everything revolves around the hawk. Look at the number of times I, me or my is employ There are lots of short, factual sounding statements in the poem, and a lot of full-stops. These help to convey the birds certainty. Hughes appears to be using the hawk in this poem as a symbol for power. A hawk would of course act instinctively and kill for the purposes of survival.The implications of Hawk Roosting are therefore that the poem is an extended allegory for the behaviour of a tyrant or power-seeking ruler. Such a person would, as the hawk is in this poem, be self-centred and arrogant. An authoritarian despot would not allow himself or his methods to be questioned, and would see the world around him as being designed to suit his purposes. Ted Hughes, in Hawk Roosting, paints a picture of a creature that is ruthless and self-involved, showing how a lust for power can take over a being and end in brutality. STRUCTUREThe structure of the poem is regular, with verses of four lines each and similar length lines which creates a feeling of tight co ntrol that adds to the theme of power and perfect balance in the hawk. The punctuation is as tight, with many sentences contained within the line, which gives an abrupt, sharp, controlled feel. However, there is some enjambement which breaks free of the stanza to run across the line break, as if the hawk can disregard the rules, creating a sleek effect as he lists his powers. THEMES IMAGERY Many nature poems deal with the beauty of nature and Gods power as creator.This poem subverts these expectations. Here, nature is brutal it kills and eats. Whats slightly disturbing is that the hawk views these as perfect and rehearses them. This almost gives the feel of a psychopath, yet he is only fulfilling his raw(a) function. The repetition of hooked from his head to his feet creates a feel of being captured, evoking his sharp, deadly beak and claws. These are the parts that the hawk emphasizes when he describes himself. The hawk deals in death. Hughes uses the metaphor of the bird flyin g direct through the bones of the living.The uneasy juxtaposition of bones with living creates an unsettling effect, and makes the bird seem almost preternaturally powerful as if he exists beyond this one moment in time. The voice of the bird displays god-like arrogance hubris. He judges that earth holds itself upwards for my followup, as if the world only exists for his benefit. The Hawk frequently uses me and my, which shows a possessive, self-focussed streak. He says he holds Creation in my foot. This is a literal, visual image of the bird in flight and the earth seeming small below, but also a metaphor of power.Hughes deliberately subverts turns upside down traditional nature poems on the loftiness of creation. The hawk lists natural features sun, air and the tree, which he thinks exist only in as much as they are of advantage to me. He also says it took the whole of Creation to produce his feather and foot the juxtaposition of something so huge and old, and biblical against a tiny foot/feather, shows how magnificent the bird thinks he is as if he is the reason creation exists.This is interesting because it twists the traditional anthropocentric world view (i.e. humans are the peak of creation, the whole point of it all), that is set down in Genesis. When he flies up he says he will revolve the world slowly as if he is qualification it turn. He gives the gift (allotment) of death, which is an ironic juxtaposition as no one would want to receive this gift. It is as if hes the god of death. He says he has permitted no change and ends with a final, simple declarative statement I am going to keep things like this. The use of am stresses his power. He doesnt say will or might hes certain.

Multiple Chioce Quiz on Transfer Pricing

Multiple choice questions Try the multiple choice questions below to test your knowledge of Chapter 18. Once you have complete the test, click on Submit Answers for Grading to get your results. If your lecturer has requested that you send your results to them, please complete the Routing Information found at the bottom of your graded rogue and click on the E-Mail Results button. Pleasedo notforward your results unless your lecturer has specifically requested that you do so. This activity contains 10 questions. - Top of nervous strain When a perfectly competitive market exists and the firm uses market-establish transfer pricing, the firm prat achieve all of the following except for subunit performance evaluation. management effort. goal congruence. equipment casualty monopoly. Bob is the manager of the Beta division. He is accountable for only the sales generated by the division. Beta is a(n) court centre. profit centre. investment centre. ta x revenue centre. A company that uses a separate transfer price for each division in a single transaction is employing dual pricing. market-based pricing. negotiated pricing. full cost pricing. If the dispenseing subunit is operating at full capacity and can sell everything produced either internally or externally, it will only be free to use a transfer price set by cost plus a mark-up. the market. negotiation. variable costing. Optoca has 2 divisions, A and B. A makes a member for tables which it can sell only to course of study B. It has no other outlet for sales.Current information for the divisions is as follows incremental cost for sectionalization A degree centigrade additive cost for incision B cc Transfer price for component 175 Final Table selling price 425 The transfer price is based on 175% of incremental costs. What is the profit per table for Optoca? 50 75 one hundred fifty 125 Optoca has 2 divisions, A and B. A makes a component for tables which it can sell only to Division B. It has no other outlet for sales. Current information for the divisions is as follows Incremental cost for Division A 100 Incremental cost for Division B 200Transfer price for component 175 Final Table selling price 425 Unit sales ccc The transfer price is based on 175% of incremental costs. What is the amount of profit recognized by Division B? 15,000 45,000 22,500 37,500 Optoca has 2 divisions, A and B. A makes a component for tables which it can sell only to Division B. It has no other outlet for sales. Current information for the divisions is as follows Incremental cost for Division A 100 Incremental cost for Division B 200 Transfer price for component 175Final Table selling price 425 The transfer price is based on 175% of incremental costs. Acotpo has offered to sell Division B the same component it currently gets from Division A for 150 per unit. If Division B accepts Acotpos offer, the firm as a whole will be 25 per unit worse off. 25 per unit separate off. 50 per unit better off. 50 per unit worse off. Optoca has 2 divisions, A and B. A makes a component for tables which it can sell only to Division B. It has no other outlet for sales.Current information for the divisions is as follows Incremental cost for Division A 100 Incremental cost for Division B 200 Transfer price for component 175 Final Table selling price 425 The transfer price is based on 175% of incremental costs. Acotpo has offered to sell Division B the same component it currently gets from Division A for 150 per unit. Given this information, what is the minimum amount that Division A would be will to sell to Division B? 100 per unit. 150 per unit. 125 per unit. 175 per unit. If Minnico, which uses cost based transfer pricing, finds that Division A has costs of 100 per unit, and Division B has divisional costs of 125 per unit, what will Division B recognise as total cost per unit if the mark-up rate is 40%? 100 per unit. 265 per unit. 225 per unit. 140 per unit. Which transfer pricing method will preserve the subunit autonomy? Cost-based pricing. Negotiated pricing. Full-cost pricing. Variable-cost pricing. Bottom of Form

Macbeth’s Strengths and Weaknesses Essay

Macbeth by William Shakespe atomic number 18 portrays the major characters of Macbeth and Lady Macbeth. They are both aspirant and are yearning for power. In the beginning of Act One, Shakespeare portrayed Macbeth as a brave and honorable general who received admiration from everyone around him including the tycoon of Scotland, Duncan when he triumphantly defeated the rebel MacDonwald. Macbeth is a good friend and loyal confidant to Duncan. Macbeth is at tragic hero because unlike Shakespeares otherwise works Macbeth is not totally evil. He is consumed by his evil ambition and guilt for the throne of Scotland that he will go to any measures necessary to come upon it. Macbeths character is very cunning and witty. He is smart enough to understand that Duncan is very kind and nave and he takes advantage of the fact that he could easily overthrow him. The pressures from his wife Lady Macbeth and the witches make him eager to kill Duncan, but most importantly it is his overwhelming a mbition for power that makes him a gutless character.Throughout the first act the character of Macbeth is developed, in which Macbeths strengths were ambition, courage, and honor. His use of these strengths and loyalty to King Duncan earned him the title of Thane of Cawdor. After the murder of Banquo, however, his large number of pride and ambition disrupted his morals and faltered his heroic image, evanesceing to the jeopardizefiring of the strengths that he in one case had, which later became his weaknesses.When Macbeth was visited by the three witches, his superstitious nature was brought out, causing him to put them and their prediction that he will rise to the throne if he kills Duncan. He wasnt satisfied with his position as the Thane of Cawdor. This is one of Macbeths weaknesses because he has no sense of self and is controlled and easily convinced to do things that he knows are wrong.We can see that Macbeth is not all evil and that the person who is behind all this chao s is Lady Macbeth. When it was time to kill Duncan and the plan was set he felt guilty because he understood how good Duncan was to him, however in the back of his mind he had an evil ambition and desire to obtain the throne. When he mentions this to his wife she doesnt pity him and tells himthat he must go on with the plan. I have no spur to prick the sides of my intent, but only vaulting ambitions, which oer leap itself and falls on the other.(Act 1, Scene 7, Lines 25-27) In this reference Macbeth admitted that it was only ambition that motivated him to become disloyal to Duncan. This is one of Macbeths biggest weaknesses in which he gives in to his evil temptations, even though he knows that his achieves are immoral. He realizes that what he did was wrong and that he did it through illegal actions. It seems as though Lady Macbeth conspired this plan and had no feeling about what bad action she committed.In general, Lady Macbeth, and well as the witches, were responsible for tur ning Macbeths strong ambitions into his most major flaw. Lady Macbeth contributed to the deterioration of his character by repugn his courage and testing his manhood if he didnt take the shortest way of obtaining the throne, which was by killing Duncan. When Macbeth tells his wife that he does not want to kill Duncan, she convinces him that he is weaker than a women, manipulating his kind and sensitive nature.The witches brought out another one of Macbeths major weaknesses, his superstitious nature. They suggest to the reader that his superstitious nature will lead to something fatal. After meeting the witches, Macbeth begins to worry, leading to hallucinations that he thinks tell him to murder Duncan, like his vision of the dagger. When Macbeth sees the dagger, he states, Is this a dagger which I see before me, The handle toward my hand? Come, let me clutch thee I have thee not, and yet I see thee still. Art thou not, fatalvision, sensible To feeling as to bargain? Or art thou b ut A dagger of the mind, a false creation, Proceeding from the heat-oppressed brain? (Act 2, Scene 1, lines 33-39).Macbeths strengths fail, turning out to be his weaknesses, which makes him a tragic hero because he was once honorable and highly respected his downfall caused by his own mistakes. After he starts committing murders, his guilty scruples comes out and leads to the deterioration of his character,leaving him unhappy and remorseful. In Macbeths case, his negative traits such as his gullibility, lack of control and willpower overcome the strengths and advantages that he once had his pride, honor, and strong, ambitious nature.

Recommendations to the Wallace Group Essay

Mr. Wallace, I have concluded my interviews with your aggroup and have a list of recommendations based on priorities. The recommendations atomic number 18 unbiased and not think to be personal attacks on the current management they are based on the sound management principles and intended to maximize your companys potential. a. Realign the corporate structure. Begin by recruiting a new board of directors using outside directors, executives of other firms but are not employees of the boards corporation1, in addition to a limited number of management directors from inside the company.This combination of three companies working as independent entities is not working, they must be integrated and a different management organizational structure must be implemented. This group allow for be able to accomplish the next recommendation. b. Develop a mission statement and goals. The company must embark upon strategic management planning. This will include Clearer wiz of strategic heap for the firm Sharper focus on what is strategically important Improved understanding of a rapidly changing environment1 The Wallace group lacks vision and goals for its divisions and this leads to a lack of direction for the management team. A mission statement defines the fundamental, unique purpose that practices a company apart from other firms of its type and identifies the mountain chain of the companys operations in terms of products offered and markets served1. This business must develop a corporate wide strategic management plan to set a direction for the company and its shareholders.A part of this management planning would consist of SWOT analysis, strategy formulation, implementation and valuation. This process is often referred to as syllabus Do Act Check or PDAC and is a continuous process. Making a profit today is not enough at that place has to be an evaluation of where the company is now, where will it be in 2, 5, & 10 years and how the company will attain those goals. c. Change the organizational chart There needs to be an in-depth evaluation of the personnel currently in place.The current chart is one of vertical structure and should be revamped to be more horizontal. This accomplishes the goals of empowerment and coordination between the divisions. A glaring problem is the VP of the chemic division, J. Luskics, as he was the former owner that guided the company into foreclosure and appears to not be running the division efficiently now. The chemical division is not even internally competitive for the plastics or electronics divisions. Mr.Luskics should either be bought out of the company or reassigned to a position that he efficacy be successful. There also is a redundancy among positions in the company, for example there are three directors of industrial relations, these positions should either be combined or incentivized to cooperate in the best interest of the company. d. Personnel development. There is no apparent leadership develo pment in place and the company has relied on promoting practiced staff to management positions which many are not equipped to handle.There needs to be a leadership development series initiated, leadership retreats to broadcast and encourage relations amongst the teams, and perhaps some Management Assessment of Proficiency (MAP) testing to asses the current management team. Management development and succession planning must be implemented to ensure long term success. Job responsibilities need to be developed and implemented for all positions but specifically for the management team including specific goals, budgeting, forecasting (long range planning), training, and staff satisf swear out. . Communication. The lack of clear strategies, long term plans, goals and objectives has led to the recent revolt at the stockholders meeting. This is a clear characteristic of the frustration felt from the staff level up and the new direction of the company must be clearly communicated to all staff. Enthusiasm is contagious and the showing of a new course for the company will be very exciting for staff. Employee surveys, suggestion boxes and an engaging of the front line staff will do much to improve morale and spark improvements.I would like to commend you sir for creating a successful company but I do believe there are concrete steps that you can take to improve the future of this company. Mr. Wallace I believe the development of a vision will produce massive results, with this vision you will attract personnel that want to be a part of a great company and profits for all involved will naturally follow. Remember Visionary companies make some of their best moves by experimentation, trial and error, opportunism, and quite literally accident2.I estimate that this plan of action will initially cost $1. 5 million but there will be cost savings realized in personnel reassignments, enlisting and retention, productivity, and a renewed sense of commitment that will be refle cted in profits far surpassing the costs.

An ideal family Essay

To create a strong and happy family is a difficult task. Persons upbringing and education starts in his or her family, even when children grow up and become independent, their parent never stop influencing their lives. From my point of view, parents are our first teachers and most influencing people. The way our parents train and even up us influence how we act and reason out. Being a parent is one of the most challenging task in the world. Parents should love, protect us and cash in ones chips their child. As children in many cases take after their parents, the latest should be a good role model. They should bring their kids up in the atmosphere of love, usual respect. But in some situations they should tell their young ones off. Parents should nurture the most important values in them, such as kindness, compassion, respect, generosity, honesty and responsibility. Teach them to be good critical and creative thinkers in a world that isnt always friendly with them.Parent should hel per their kids limp through a crisis and help them to grow useful members of society. Children, in their turn, should try to understand that their parents do their utmost to bring them up correctly. Kids should share their problems with their parents and remember that they can rely on them, not retire into their shells. They shouldnt use bad language or talk back to their mom and dad, because they may hurt them through the bad words without thinking. Youngsters should life up to their parents, dont lie to them. They should try not to have their parents worry about them all the time, should act as a grown up. Children should stand-in their parents too, as sometimes they can be bad-tempered or a bit depressed. And, of course, children shouldnt be shy to show love to their parents, doing it by dictum some sweet words, sending gifts, kissing or other ways.

Microwavable frozen foods

United States and china had been seemingly a stable economic partner since years ago. Trades were often made between these two big countries and then China became the third economic partner of US. And also became second in terms of exports to the US. On the opposite hand, exports were also given to Chin. It is simply stated that China and US were mutual in economic relations.In the Case of Microwavable Frozen Foods that we wish to export to China. The goal is to have heavy(p) raft by having great facilitation on the trade that will be occurring between China and US on the exports to be presented by China(Richelson). There is re altogethery the need of imageing the wellness of fair trade facilitation as well as the neediness of the good for the target comp both.A good must be learned really consumable for the consumers of the company. A good trade facilitation would extend efficiently to the smoothly flow of the transactions as well as simplifying the process, documentation and information to be held during the transactions. Smooth flow of transaction may go forth to lessen burdens especially with the cost of business trade and great security and control. Being an external trade, during the transaction there must be some cistrons to be considered the contract to be made regarding the border and custom issues and transport services.When dealing with international trade, awareness to the business transaction made is a great factor to have high performance in the business world(My Own Business). In the export of microwavable frozen foods, we should consider the type of product that we wish to present to our trade partner by ensuring a highly rated product to achieve mutual pleasures between your partner and the exporter yourself.Contracts should be also one of the necessary materials in doing international transactions even only locally. A contract can ensure that your goods will be at good or it is naturally needed for the developing on good partnersh ip. Indeed, contacts are capable for the mis presumes that would possibly do during the transaction and trade. With contracts, trade partner were both(prenominal) attain benefits especially during fault and blunder for the transactions. With contacts, both parties are well secured for the deal and companies as well be secured.When dealing only with the company for the transaction to be made, there is also the need to understand and to be aware of the countrys laws for any exports to be received by the company within the country. It is the responsibility as a exporter to perceive all necessary transaction procedures to be made.The exportation must be guided according to the Border and Customs ruling of China where our business partner was located(McIntyre). This regularity of knowing more about borders and custom rulings will improve the efficiency of the trade as well as run smoothly due to compliancy to the rule. There was also sometimes that before making the transaction, there is a need for the presence of any business related offices as well as security offices for the importing country to manage the trade simultaneously and secured.Regarding with this, the paper document as well as the good must be presented commencement to the clients together with their business lawyers for the preparation of good del and agreement to be held in the near future. With the stand by of each lawyers of both parties, deal and agreements will be efficiently be made and completed. Prior to the aid of lawyers, the risks of ignorance to the deal and agreement will be merely obliterated.Financing the exportations of goods was truly beneficial as well as other requirements such as contract and agreement. Any financing requirement must be fulfilled eagerly for the progress for the progress of the transactions(Co.). Because making a great transaction is relevant for the payment of your exported Goods. Cost of good also should be considered, because the target company was not on ly making agreement with one merchandise company.Attractive and competitive pricing of Goods should be recognized as looking for the business as a competitive one. Because they were not only dealing with us, we must consider other rivals pricing or cost of good to be able to cope up with the competition in the world of business most promising in the world of exportations. As a response to other goods prices, we can offer credits and extend their payment dues and this will enable our transaction that would take place in place of other exporters.Regarding with the international trade there still one important thing that should be discussed this is the American Depository notice or ADR. This is simply known to be non other than share of stocks acquired by non US companies for their trade with US Company(Kamlet and Regnery). This is an efficient way of handling trade of non US Company with us because they can acquire share of stocks that can be invested when any trade was made betwee n our company and theirs. This is a great help to them if they wishes to stock trade in any US stock exchange.Being an exporting company, these were truly considerable facts and details that we be looking upon when dealing with our clients especially in abroad. Having knowledge with these things would remarkably a great sense of competition that would further be accomplished. Paying attention to the clients yearning and yearning would be capable for us to manifest a good business performance alongside with other big companies surrounding us. Preparing for these activities such as trading would not be as tough if we consider all the things of factors of a good and competitive business and also it will help lessen any risks for any transactions to be made.Work CitedCo., Unz &. Financing Export Transactions. 1999.Kamlet, Art, and George Regnery. Stocks American Depositary Receipts. (2002).McIntyre, Doug. Investing in China. (2007).My Own Business, Inc. International Trade. 2007.Richel son, Jeffrey T. China and the United States From Hostility to Engagement, 1960-1998 (1999).

Models For Food Security In India Environmental Sciences Essay

88. By the twelvemonth 2020, India is expected to step forward as champion of the four study kings in the universe, harmonizing to a peck prep bed by the introduction Bank. Even so, India leave alone non be able to do much headroom and feeler on the food for thought security forepart without showing in cardinal alterations in its agribusiness. It is hence, imperative that the bing blueprints in agribusiness sustain cardinal alterations. This is of import as more(prenominal) than two- deuce-aces of the cosmos still depend on agribusiness. The young mutation is easy petering out and even if our nutrient production witnesses a quadruple rise, thither leave alone be many kids who give still endure sustainment lack and deficiency of equal nutrient. Harmonizing to a survey by Prof. Anatoly Kratiger of Cornell University, India s foodgrains end product will h aging to more than double from the present degrees in order to diet the following two coevalss. In this contex t, it is indispensable that our husbandmans atomic number 18 ready to scat into the quarrel.89. It was fresh even during 1966-1968 that unless husbandmans adopt environment entirelyy sound designs equivalent incorporate alimentary supply, integrated pest mission and scientific piss wariness at that place will be jobs in the long-run sustainability of production. and so Mr Swaminathanan made the undermentioned statement in his talk at the Indian Science Congress held in Varanasi in January 1968 1 Exploitative agribusiness offers great dangers if carried out with provided an immediate net in fargon or production motivation. The emerging exploitatory createing community in India should go cognizant of this. Intensive shade of lend without preservation of dirt birthrate and dirt winding would take, fin anyy, to the jumping up of comeuppances. Irrigation without agreement for waste pipe would ensue in dirts acquiring alkaline or saline. Indiscriminate usage of pesticid es, antifungals and weedkillers could do inauspicious alterations in biological balance every bit good as lead to an addition in the relative incidence of malignant neoplastic disease and opposite diseases, with the toxic resi receivables present in the grains or other comestible parts. Unscientific tapping of belowground H2O will take to the rapid exhaustion of this fantastic bang-up resourcefulness left to us through ages of contributecel floriculture. The rapid replacing of drove locally fitting assortments with one or two amply-yielding strains in big immediate countries would ensue in the send of upright diseases capable of pass overing out full proceedss, as happened prior to the Irish murphy dearth of 1854 and the Bengal sieve dearth in 1942. Therefore, the induction of exploitatory agribusiness without a proper apprehension of the versatile personal effects of every one of the alterations divulged into traditional agribusiness, and without first constructing up a proper scientific and developing imbruted to prolong it, may nevertheless take us, in the long tally, into an season of agricultural catastrophe or else than one of agricultural madeness. 90. In India, a bulk of husbandmans have circumstantial retentions and atomic number 18 vulnerable to the vagaries of character like drouth and inundations. Against such a underpinground, at that place is a demand to do particular attempt to growing productivity. Since India is diverse state with changing backgroundscape & A environmental forms, the technological solutions for its agribusiness will variegate consequently. To get enduring autonomy at the topic and family degrees, enterprises must be founded on the reins of stinting feasibleness, fair play, wide mesh, and the sustainable usage of natural resources.91. The tenderityity of ecotechnology development and airing, the effectual acceptance of incorporate systems of cistron and natural resources agency and the ef fectual harnessing of nurture plans should go indispensable elements of the scientific discipline and engineering for basic gay demands motion in India.92. To sum up, there is no clip to loosen up on the nutrient production forepart. It is obvious that we have to set down forth more, fairish now produce it in a mode that there is no inauspicious environmental or societal impact. Water is in all probability to be a serious restraint. Hence, precedence should be leaven to developing and distributing efficient H2O focal baksheesh techniques, including aquifer direction, waste H2O recycling and conjunctive usage of surface and rain H2O. Future agricultural production engineerings should be ground on the foundation of incorporate natural resources direction. The recommendations given below should go built-in portion of Indian Agricultural development policies.RECOMMENDATIONS FOR SUSTAINABLE AGRICULTURAL DEVELOPMENT IN INDIASynergy between Public Policy and Investment93. sol id events in our agribusiness like the green revolution in wheat put down rice and milk revolution owe their beginning to reciprocally reenforcing, bundles of engineering, services and public policies. While scientists locoweed develop give heightening engineerings, these will non do an impact on production and productiveness without appropriate sustain from public policy and investing.94. The wheat revolution commemorated in 1968 through the issue of a particular cast by Smt Indira Gandhi is a authoritative illustration of the power of a symphony attack in planing and implementing programmes which toilette look in leapfrogging in the accomplishment of the coveted ends. For illustration, the husbandmans in the Indian Fertile Cres centime Area consisting Punjab, Haryana and western sandwich UP helped to increase wheat production between 1964 and 1968 by an order comparable to that achieved from the clip of Mohenjodaro, i.e. , our husbandmans increase wheat production in four old ages by a measure correspondent to that courtly during the predating four thousand old ages 2 . This is a good illustration of the power of the symphonic music attack in the administration of multidimensional seek and development programmes.Land Use Policy95. The demand for a sharp and crystalline land usage policy is deviation evident from the increase figure of struggles in congeneric to the acquisition of put forward land for industrial and other non nurture utilizations. Such issues should be dealt with scientifically and non only if politically or emotionally. Short-run net income should non sabotage long term nutrient security. In a preponderantly plain and agricultural state like India, agriculture is the chief beginning of become and income security. fodder security with place grown nutrient is non merely of import for beef uping rural brave security, but it is anyway indispensable for both(prenominal) internal security and external sovereignty.96. At the sa me(p) clip, the unfinished sections of land reform including the distribution of ceiling bare(a) land to assetless ho accustom livelihoods should be attended to with velocity and committedness. The involvements of unregistered agriculturists, renters and tribal agriculturists will constitute to be safeguarded. Wherever possible, atleast one acre of land should be provided to each landless apprehend menage.Economic Well existence and Nutrition Security of Rural Families97. erect house applys in India constitute over two-thirds of the population. Since husbandmans are anyways consumers, the crisp differentiation, frequently made in industrialized states between the involvements of husbandmans, and consumers, is non valid in the Indian context. Detailed analyses of the causes of nutrient insecurity in rural and urban countries have revealed that the major cause of undernutrition and malnutrition among kids, vainglorious females and tap forces is the deficiency of equal buying power to allow entree to balanced diets and clean imbibing H2O. Therefore, a three-pronged precis as given below demands to be introduced to guarantee the economic well being and nutrition security of rural households ( a ) First, households possessing assets like land, farm animal or fish pools will hold to be sustainmentered to heighten the productiveness of their resource gifts in an environmentally and economically sustainable mode. The smaller the retention, the greater is the demand for martable excess. Hence, the upper limit has to be placed on increasing end product per units of land, H2O, foods and dig outs based on engineerings which are bionomically and economically sound. For this, we engage more look for on the development of eco-technologies based on intermixing traditional ecological prudence with frontier engineerings like information and biotechnology and infinite, atomic and re modernisticable readiness engineerings.( B ) Second, just about a 3rd of the r ural population and a big proportion of handsome females earn their support through pay craft. They have no assets like land or farm animal or fishpond and are anyways frequently illiterate. The challenge in the congressman of landless agricultural jade is heightening the economic economic repute of their clip and labor by conveying about a paradigm displacement from uneducated to skilled depart. A monumental attempt in the clownish of cognition and skill authorization of the crowing females and work forces representing the landless labor work force is indispensable if economic value is to be added to their clip and labor. They will hold to be enabled to take to skilled non farm purpose through securities industry-driven micro-enterprises supported by microcredit. Self-help Groups ( SHGs ) of assetless adult females and work forces will hold to be made sustainable through backward linkages to recognition and engineering and forward linkages with direction and grocerys. Common belongings resources will hold to be developed and managed in a mode that they can supply indispensable support systems in countries such as fresh fish and provender for nourished carnal landed estate every bit good as fuel wood.( degree Celsius ) The 3rd assemblage are rural craftsmans working in the secondary and third sectors of the economic system. Their accomplishments will hold to be mobilised to heighten the drive of agribusiness through value add-on to primary trade ins and variegation of support chances. The object for the technological upgradation of rural professions should be based on the rule of societal inclusion.98. Therefore, the three pronged scheme consists of bettering the productiveness of land, H2O, farm animal and labor in the instance of plus having farm households, change overing unskilled agricultural labor into skilled enterprisers engaged in organizing market-driven non-farm endeavors, and heightening the accomplishments of households involve d in the secondary and third sectors of the rural economic system, so that they are able to help in bettering agricultural cogency and fight and in stoping the predominating mismatch between production and station crop engineerings.Sustainable Progresss in Small mature Productivity99. Sustainability has to be measured in ecological, economic and equity solid grounds. First, the ecological foundations indispensable for sustained progresss in productiveness, such as dirt, H2O, biodiversity, woods and mood are under terrible anthropogenetic force per unit areas. The human and farm animate being population back uping capacity of the ecosystem has been exceeded in many parts of the state. The measure and theatrical role of land H2O, which is now the dominant beginning of irrigation H2O, is fast deteriorating. Although India has over 20 per cent of the universe s farm animate being population, good graze lands are practically nonexistent. Intensifying current jobs, the opening of inau spicious alterations in precipitation, temperature and sea degree due to planetary heating and clime alteration is no longer merely a theoretical speculation.100. Second in the country of farm economic sciences, resource flow to the agribusiness sector is worsening and liability of pocketable and fringy farm households is lifting. Input repoint be are increasing, while factor productiveness is worsening. Contrary to the general feeling of agricultural prosperity in Punjab, the entire debt in the farm sector has been estimated to hold increased from Rs.5,700 crore in 1996-97 to Rs.11,133 crore in two hundred2-03. The call back farm debt in Punjab now exceeds a hundred thousand of rupees ( Rs.1,01,210 ) , out of which more than 40 per cent is provided by non-institutional beginnings at an involvement rate of about 24 per cent per annum. The follow-risk-return construction of agriculture is going inauspicious to over 80 million agriculture households runing little retentions, si nce the resource hapless households cultivating 1 to 2 hectares or less are unable to profit from the power of gradatory table at both the production and station crop stages of farming. There is no flat fiddleing field for them in the market and they are being exposed to competition from the capital, engineering and subsidy goaded agribusiness of industrialized states 3 .101. Third, a engineering weariness has farther aggravated husbandman s jobs, since smaller the farm the greater is the demand for sustained marketable excess, in order to hold hard currency income. Linkages between the explore lab and the field have weakened and extension in services has frequently, small to widen by demeanor of location, clip and agriculture system specific information and advice. Good caliber seeds at inexpensive financial values are in short supply and specious pesticides and biofertilisers are being change in the absence of effectual quality control systems. Input supply is in confusion particularly in dry farming countries. Micronutrient lacks in the dirt every bit good as jobs associating to squashy natural philosophies are shouting for attending. growers have no manner of acquiring proactive advice on land usage based on meteoric and selling factors. Though it is now over 12 old ages since the WTO government started operating in agribusiness, serious efforts are yet to be made to establish in rural countries motions for Quality Literacy ( healthful and phytosanitary steps and codex alimentarius criterions of nutrient safety ) , Trade Literacy ( likely demand-supply and monetary value state of affairs ) , Legal Literacy ( IPR, Farmers Rights ) and Familial Literacy ( genetically modified harvests ) . No inquire the predominating spread between possible and existent turnouts even with engineerings presently on the shelf is broad as shown below 4 CropUSAChinaIndiaMaize890049002100Mick75006000ccc0Soies225017401050Seed like20603500750Tomato625024001430Comparati ve Crop Productivity ( Kg/Hectare )102. In the country of engineering, there is besides a demand to bridge the spell digital and familial divides. Post-harvest engineering is hapless and there is small value add-on peculiarly in the instance of fruits, veggies and spices including a broad scope of tubers and healthful and aromatic workss. Sustainable intensification, ecologically, economically and nutritionally plummy variegation and value add-on to the full biomass are of import for raising little and fringy farm households to a higher place subsistence degree. All this will name for originating an epoch of cognition intensive agribusiness. Modern ICT afford an chance for establishing a cognition revolution in rural India. The torch carriers of this revolution should be rural adult females and work forces. Participatory research and knowledge direction affecting farm adult females and work forces should be the chief parcel of lands of research, instruction and extension. Farme rs should be regarded as spouses and pioneers in conveying about agricultural transmutation and non as beneficiaries of authorities programmes. Such a alteration in mentality among authorities officials every bit good as scientists is indispensable for advancement.103. Technologies should assist in locomote labour variegation and non displacement. Women husbandmans and labour peculiarly need to be assisted with implements and equipment which will assist to trimmed down plodding and the figure of hours of work, while adding economic value to each hr of work. Womans suffer from a multiple load on their clip due to homemaking and maintaining, kid raising and income earning duties. They need appropriate support services like foundling hospitals and kid oversight Centres and equal nutrition. The feminization of agribusiness, due to male emigration, require specific attending with mention to gender sensitive farm and recognition policies.104. Revival of little farmer-friendly enginee rings should be based on sound rules of economic sciences and participatory research and cognition direction. If for illustration, rice-wheat rotary motion is non desirable in Punjab from the point of view of ecological sustainability, the alternate agriculture systems proposed should be capable of talent similar income. Agronomic informations should non merely indicate output per hectare of land, but besides the likely return from every rupee invested and every liter of H2O used by the husbandman. Lateral acquisition among farm adult females and work forces should be fostered, since husbandman to farmer acquisition is based on the rule one ounce of pattern is, deserving dozenss of theory . India is besides the place of some of the shell farm households in the universe. In the midst of many hungriness and agro-ecological hot musca volitanss , there are besides legion farming clever musca volitanss . In order to multiply the benefits from the experience and accomplishments of outstanding farm work forces and adult females, Farm Schools should be established in their Fieldss. Farmer to farmer acquisition is genuinely effectual because of the religion little husbandmans have in the economic informations provided by fellow husbandmans.Precedences in Farm look into and phylogenesis105. Conservation realm and grand Agriculture. Conservation farming ballads emphasis on the sustainable direction of dirt and H2O. It involves soil wellness sweetening through coincident attending to the natural philosophies, chemical science and microbiology of dirts. Scientific H2O direction purposes to utilize the available irrigation H2O in a conjuctive mode ( for illustration, surface and groundwater ) and to maximize income per bead of H2O. Green agribusiness involves the usage of environmentally desirable engineerings like Integrated Plant Nutrition, Integrated Nutrient provision etc. While organic farming precludes the usage of mineral fertilizers, chemical pesticides and genetically modified harvest assortments, green agribusiness permits their usage in such a mode that productiveness can be improved in sempiternity without associated ecological injury. To a bulk of little farm households who have no farm animal, green agribusiness is the nerve pathway for an ever-green revolution. Therefore, an optimal blend of green agricultural patterns and organic agriculture methods should be promoted in all major farming systems. There should be internationally recognized corroboration processs for the merchandises of both organic agriculture and green agribusiness.106. Productiveness and Livelihood Enhancement in Rainfed Areas. The major tract has to be productivity sweetening and the cultivation of high-value but low-water requiring harvests. A catalytic intercession which will assist to increase productiveness instantly is attending to dirty health care. The proviso of micronutrients like S, Zn and B can assist to increase output by over 50 per cent in dryland farming countries. Facilities for placing and rectifying micronutrient lacks in dirts are desperately unavoidable. Soil Health Clinics can be operated by SHGs consisting rural adult females and work forces who can publish each farm household with a Soil Health Card. Besides, farm animal and supports are closely interrelated in semi-arid and waterless countries. Hence, the constitution of fresh fish and feed Bankss should have mechanical press attending. The spread between possible and existent outputs is high in dryland farming countries. Bridging the productiveness spread in an economically feasible mode is the best safety cyberspace against husbandmans distress in such countries. For pep pill uping advancement in happening permanent solutions to the economic sufferings of husbandmans and agricultural labor, it would be reusable to organize order-level pool of private and public sector establishments willing to assist in bettering little farm income and off-farm em ployment chances through appropriate engineerings and producer-oriented selling.107. Small Farmers Horticulture Estates. The cultivation of fruits, veggies, flowers, spices, medicative and aromatic workss is now go oning in a large manner in several parts of the state. A National Horticulture delegation has been launched to ingeminate the production of veggies and fruits in seven old ages ( from 150 million metric tons per twelvemonth to 300 million metric tons ) 5 . Bing perishable trade goods, horticultural harvests need effectual can support in the countries of production, processing, retentivity, transit and selling. In small towns bordering big ingestion Centres ( both for place and exportation markets ) , little husbandmans can be helped to organize Small Farmers Horticulture Estates in the signifier of SHGs for co-ops covering an country of 200 to 500 hectares. In such estates, specialised activities like seed production, tissue civilization extension, production of comp ost, vermiculture, biofertilisers, biopesticides and e-commerce can be promoted through technological and recognition, authorization. Such Estates will confabulate on husbandmans cultivating one to two hectares the power of scale both at the production and station crop stages of the horticultural endeavor. Low cost nurseries conjugated with fertigation techniques can be promoted, in add-on to high tech gardening which can be undertaken by farm and place scientific discipline alumnuss. The production of good quality, disease-free seting stuff is of import in all clonally propagated species. Besides, seeds and seting stuffs of assortments suited for treating will hold to be provided to husbandmans in countries where production and processing are think. Such dependent linkages between manufacturers and processors will ease sourcing of good quality natural stuff for the processing industry. The basic rule underlying such Estates is decentralized production supported by key centralise d services.108. Enhancing the Productivity of Cotton and the Global Competitiveness of the Cotton Textile Industry. The fabric sector is a major employment, and income providing sector of the national economic system. With the coming to an terminal of the multi-fibre agreement on 1 January, 2005, our cotton manufacturers, weavers and the fabric industry are meeting both new chances and menaces 6 . Without enhanced efficiency, it will be impossible to take proceeds of the emerging market chances. Technological upgrading of all the constituents of the cotton production-processing-marketing rhythm, will be needed to protect this small sector of our economic system from reverses. A productiveness, quality and value add-on revolution is desperately needed in cotton production and processing. The pollution jobs associated with small-scale fabric units can be solved by farming Environmental Management Cooperatives consisting 50 to 100 little graduated table fabric units.109. Womans Farme rs and Farm Labour. There is increasing feminization of agribusiness in households with little and fringy retentions, due to the emigration of work forces. The job is peculiarly terrible in hill countries like Uttaranchal, Jharkhand and the North eastern provinces. Yet, out of about 50 million Kisan mention Cards issued in the state, less than 5 per cent seem to hold been issued to adult females. The proposed bestowal of land rights to adult females will assist to right this straitening state of affairs. Meanwhile, joint pattas will hold to be issued to do adult females eligible for institutional recognition. Besides, adult females working the whole twenty-four hours in the field require support services like foundling hospitals and twenty-four hours attention Centres. A alone chance now exists for breeding the on-going National Rural Employment Guarantee programme by enlarging the construct of work in the instance of adult females by including such indispensable activities like d ata track foundling hospitals and kid attention Centres, fixing school midday repasts, set abouting immunization of kids, supplying household planning services, etc. reach will so go a powerful tool for human and societal development.110. Every Village a Knowledge Centre. India s strength in ICT provides uncommon chances for fetching digital and cognition connectivity to every small town in the state. Reaching the unapproachable and voicing the unstated will be possible through an integrated ICT scheme affecting the cyberspace, community wireless, overseas wire Television, cell phone and common imperativeness. The fiber-optic web of Bharat Sanchar Nigam Limited ( BSNL ) , consisting 30,000 exchanges, covers all the 6,000 blocks of the state. If each exchange is all-inclusive to 20 nearby small towns, all the 600,000 small towns can be covered at marginal outgo 7 .111. The Rural Knowledge Centres or Gyan Chaupals should be located in public infinites like punchayet Buildings or Village Schools, so that there is societal inclusion in entree. The National Alliance for Mission Every Village a Knowledge Centre and the Jamsetji Tata National Virtual Academy for Rural successfulness are effectual instruments for establishing cognition based agribusiness and rural nonfarm endeavors. Panchayat Raj Institutions will hold to play a lead function in the rural cognition revolution. NABARD, SBI and other fiscal establishments can back up Rural ICT SHGs, who can keep and run the Gyan Chaupals. Connectivity, content, capacity edifice, attention and direction of the Gyan Chaupal will all need integrated attending to do the motion socially meaningful and economically sustainable.112. Employment contemporaries in Agriculture. In the ultimate analysis, a sustainable terminal to hunger can be achieved merely by supplying chances for every adult female and adult male to gain their day-to-day staff of life. A elaborate scheme for making extra skilled occupations through gard ening, cotton, energy plantations, carnal farming, biofuels and biomass use has to be developed. India is rich in livestock resources. The ownership form is more classless in the instance of farm animal, as compared to set down. Crop-livestock incorporate production systems can assist to heighten both family nutrition security and hard currency income. Overruling precedence should travel to contending the dearth of jobs/sustainable support chances through imaginative activity of economically honoring and intellectually stimulating work chances in small towns. This is the lone manner to pull and retain educated young person in small towns. We need to establish a major non-farm support enterprise on the lines of the Township-Village Enterprises of China.113. Uncommon Opportunities. There are legion institutional constructions already available with Government like Agri-clinics, Agri-business Centres, Food Parks, Agri-export Zones, several Commodity Centre Technology Missions, Watersh ed and waste matter Development Programmes, National Rainfed Area Authority, National Fisheries Development Board and National Rural Health Mission. alternatively of get downing many new strategies, what is needed is the revival and restructuring of bing strategies and institutional constructions and the retooling and retaining of bing staff. Besides, convergence and synergy among the legion ongoing vertically structured programmes can assist to cut down dealing costs and better, the efficiency of bringing.114. The induction of National Rural Employment Guarantee Scheme together with an expanded Food for Work Programme provides a alone chance for establishing a multipronged onslaught on poorness and rural unemployment. Engendered work under this programme can go a accelerator of a long-run sustainable support security motion in the different ecological, hydrological and husbandmans distress hot spots of the state.115. To win, the above programmes will hold to be implemented in a de centralised mode with authorization and answerability being linked at the field degree. The 11th Agenda of the Constitution 73rd Amendment Act 1992 on the panchayets lists agribusiness, including agricultural extension, as the really first duty of panchayets. Other points including Animal farming, dairying and domestic fowl, piscaries, minor irrigation, H2O direction, watershed development, land betterment, feat of land reforms and land consolidation and dirt preservation are besides the duties of panchayets. Therefore they should be actively involved in the elaborate planning and execution of programmes in agribusiness and allied sectors.116. Credit and Public Investment. The crisis in our agribusiness has arisen because of deficiency of appropriate public policies every bit good as equal public investing in rural substructure peculiarly in the countries of storage, processing and value add-on. Therefore the remedies for the prevailing maladies can be found merely in public polici es and investing. Spending by Central and State authoritiess in beef uping the ecological, foundations for sustained progresss in farm productiveness has been traveling down. just about of the money spent by Central and State authoritiess goes to the wages of authorities officers and employees. Consequently, rural substructure including power, irrigation, market paces, rural godowns and communicating, every bit good as critical sectors like wellness and instruction remain grossly underfunded.117. Agricultural Competitiveness Basket of Choices. Raising the agricultural fight of husbandmans with little retentions is a major challenge. Methods of confabulating the power of graduated table to little farm households both at the production and post-harvest stages of agriculture is an pressing necessity. A basket of picks should be available to farm adult females and work forces cultivating 1 or 2 hectares or below to heighten their income earning capacity. Productivity betterment to inc rease the marketable excess available to little farm households, assured and compensable selling chances, and making chances for landless agricultural labor households for skilled non-farm employment should be the bottom line of public policy for rural India. The basket of picks for heightening productiveness, profitableness and sustainability, could embarrass the undermentioned ( a ) Formation of SHGs of farm households to set about group operations in countries like H2O harvest home and direction, pest direction and post-harvest engineering. Some illustrations are Small Farmers Gardening, Cotton and domestic fowl Estates.( B ) Promotion of contract farming to guarantee assured marketing mercantile establishments on the footing of a chiseled Code of Conduct. The Code of Conduct for Contract Farming should include proviso of support to little manufacturers in the countries of engineering and input supply and carnival and assured monetary value for the green goods. The contract sho uld stand for a win-win state of affairs both for the manufacturer and the buyer.( degree Celsius ) Revitalising and reconstituting assorted authorities strategies like Agri-clinics, Agri-business Centres, Rural Godowns, Small Farmers Agri-Business Consortium ( SFAC ) , National Horticulture Board, etc. so as to do them farmer-centric.( vitamin D ) Helping little husbandmans to organize either co-ops or manufacturer companies.( vitamin E ) Promoting the active engagement of PRIs and local organic structures to further Watershed/Command Area Communities and doing the Watershed or the irrigation bid country the point of convergence and integrating of all relevant Technology Missions like those associating to oil-rich seeds, pulsations, corn, cotton, gardening, milk, etc. Convergence and synergism among the legion Technology Missions now in advancement will better their public-service corporation and impact and besides assist to cut down overall dealing costs. All the Missions could be integrated under an umbrella set up, which could be termed National Federation of Farm Technology Missions . The on-going Missions runing on parallel lines appear to hold really small answerability, since in malice of their being, imports of pulsations and oil-rich seeds are traveling up twelvemonth after twelvemonth.118. particular Role of Education and Healthcare. Value add-on to primary merchandises, turning unskilled into skilled labor and utilizing digital engineering in small towns, require for effectual execution an educated population, with minimal degree of classify X instruction. Unless all kids in our small towns, particularly misss, Dalits and rural hapless get educated, the ends of societal equity and agricultural and rural prosperity can non be achieved. Until formal literacy becomes cosmopolitan, the techniracy motion ( i.e. , larning the latest proficient accomplishments through work experience ) should be spread. For this Krishi Vigyan Kendras ( KVKs ) should b e developed into Krishi aur Udyog Vigyan Kendras , with equal accent on production and post-harvest engineerings. Farm Schools can besides be established in the Fieldss of advanced husbandmans. A desirable construction of KVKs for the twenty-first century is indicated below Farm Universities/ICAR and CSIR Institutes/Private Sector R & A D/NGOsKrishi aur Udyog Vigyan KendraProduction internal Resources Conservation and Post-harvestTechnology Enhancement Soil, Water, Biodiversity TechnologyLinkagesPanchayati Farm Schools Gyan Chaupals Farmer-Participatory FinancialRaj Action Research InstitutionsInstitutions Programs119. Anticipatory Research Fixing for Climate Change. Climate alteration taking to alterations in temperature, precipitation, CO2 degrees and sea degree are likely to impact different parts of the universe otherwise. It is nevertheless clear that hapless states and the hapless in all states will endure most, since they lack the header capacity to defy the inauspicious effects of clime alteration. Recent studies indicate that as a consequence of the thaw of ice caused by higher temperatures, a new concatenation of islands which were under the ice have now become seeable. Greenland and the Artic Glaciers are runing and inundations are likely to be more common in North India. It will be prudent to fix reckon machine stimulation theoretical accounts of different conditions chances and fix eventuality programs to run into the challenges. Anticipatory research is besides needed to protect coastal communities through bio-shields and familial shields. This country of prevenient research should have high precedence.The Concept of Biovillages120. Whenever a new engineering is introduced in a underdeveloped county, whether it is tissue civilization or biotechnology or any other kind, the greatest benefit is ever achieved by big graduated table husbandmans. When the benefit goes to big graduated table husbandmans, the trade good monetary values come down at a certain point and the fringy husbandmans become more fringy at the clip of demand. This is where it is really of import that we start the construct of biovillages in India. Each biovillage will be a comprehensive unit in itself in footings of research, production and harvest substructure suited to that small town. A exemplary illustration of a biovillage as practiced in Ernakulam District as a ergonomics District is demonstrated in Appendix 8 .Decision121. Since land and H2O are shriveling resources for agribusiness, there is no excerption except to bring forth more nutrient and other agricultural trade goods from less per capita arable land and irrigation H2O. In other words, the demand for more nutrient has to be met through higher outputs per units of land, H2O, energy and clip. Science can play an of import function in accomplishing the same. However, unregulated and injudicious employment of innovative agricultural tools can besides ensue in catastrophe. Hence the hypothe sis that scientific discipline and engineering entirely can work out universe nutrient crisis is merely partly true. Modern scientific patterns have to get married up with dirt preservation, environmental protection and population authorization to do them effectual tools in covering with universe hungriness. It will be appropriate to mention to the needed scientific advancement on the farms as an ever-green revolution , to underscore that the productiveness progress is sustainable overtime merely if it is rooted in the rules of ecology, economic sciences, societal and gender equity and employment coevals.122. The universe can bring forth adequate nutrient for a population of 10 billion by tackling the untapped output reservoir bing even with presently available engineerings, if greater attending is given to dirty wellness attention and H2O direction. We must support the productiveness additions so far made, widen the additions to semi-arid and fringy environments, and work for new additions utilizing blends of frontier engineerings and traditional ecological prudence. The job of bring forthing equal buying power to enable households populating in poorness to hold economic entree to nutrient will still face us. This is where a job-led economic growing scheme based on micro-level planning, micro-enterprises and microcredit will be of great instigate. Integrated production and post-harvest engineerings and on-farm and off-farm employment schemes will be needed to supply supports for all in rural countries.123. In instance of India, we need to switch our focal point in agribusiness from merely mensurating production in metric footings to the adult females and work forces for whom agriculture is both a manner of life and the principal means to livelihood. Agricultural advancement should be measured in footings of growing in the existent income of farm households. If steps as listed above are adopted, the income and work security of two-thirds of India s populati on can be assured. As Mahatma Gandhi envisaged that Gram Swaraj is the tract to the Poorna Swaraj .Appendix( Refers to para 120 )ERNAKULAM A BIOTECHNOLOGY DISTRICTIntroduction1. The geographical spread of the territory runing from the pes hills of western sandwich Ghats to the coastal part involves different options as support -ranging from intensive agribusiness to marine merchandises farming. This calls for coincident attempts in tackling biotechnology tools to upgrade the activity in the plantation, gardening, hard currency harvests sectors and besides in bettering the productiveness of naval farming systems.2. The territory has good laid out substructure, such as roads, electricity, big cold storage installations to treat Marine merchandises, transit systems, etc. Hence the push of the biotechnology attacks is to upgrade productiveness and quality. The take up of developing this District as a Biotech District was chiefly to ( a ) Improve productiveness to accomplish internat ional fight.( B ) Upgrade quality utilizing biotech tools rendering quality and uniformity at no excess cost.( degree Celsius ) Develop the enterpreneural spirit of the literate work force to research non traditional occupation chances and besides to develop skilled trained work force for biotech industries.The Approach2. Ernakulam District has 83 panchayets and 10 muncipalities. The biotechnology inputs are harnessed to better the muncipalities and corporations. The biotechnology tools therefore harnessed are brought under agribusiness, gardening, piscaries, domestic fowl, environment and homo Resource Development ( HRD ) . Assorted tissue civilization merchandises are proposed to be introduced in the District. The first successful commercial merchandise among spices is cardamom. Over half a million cardamon workss were distributed in the cardamon turning belt of Idukki. Cardamom is traditionally multiplied through seeds This resulted in a high grade of variableness. India confus ed its innovator place as a universe provider of cardamon to little cardinal American states due to miss of international fight. In India 30 % of the workss were lending to 70 % of the output. Such high giving up workss were selected and multiplied through tissue civilization and supplied to the husbandmans. Allowing the engineering is of premier importance while tackling, market goaded quality parametric quantities should be considered while choices are made instead than our output. In cardamom the market has a penchant for green clasp capsules. Choices were identified, which possesed over 55 % acceptable quality as against 35 % of the normal farm quality.3. It is besides of import to utilize appropriate engineering to avoid ecological perturbation. Region specific cardamon ringer parts were selected and distributed to the several parts as against giving the best choices for all the topographic points. It is of import to keep a basket of choices to protect the farms from unexpected incidence of disease. In coaction with the Spices Board and Department of 300 Biotechnology, New Delhi, over 100 presentation secret plans of one hectare each are laid out in the full cardamon turning piece of lands. When we introduce any new engineering, it is of import to foreground the value to the husbandman. Tissue civilization cardamon workss showed promising label of early bearing coupled with uniformity in cropping, taking to higher outputs. This could cut down the motherliness period to get down reaping fast-paced.4. Delivery Systems. It is besides of import to see bringing systems while we parcel engineerings. It was observed that the market is extremely elastic sing the monetary value of the merchandise. Conventional cardamon seedling costs Rs. 1.5 to 2, while tissue cultured cardamon workss cost over Rs. 5 to the husbandmans. While the husbandman makes his intent of seting stuff, many a clip the determination goes in the favor of following conventional engineering due to economical considerations. So the aim is to analyze the cost component and to cut the wastages and channel cost. This makes the merchandise more competitory. With this in head, transit engineering was developed to take the tissue civilization workss export to the several parts, where the merchandise will be consumed. Regional babys rooms utilizing low cost local stuffs were established taking usefulness of climatic conditions. The cardamon turning parts in the hills are blessed with mild climatic conditions without extremes. The cost of such a shadiness house was brought down to Rs. 40 per sq. pess as against Rs. 400 per sq. pess in film over houses supplying controlled temperature conditions. Such an attempt lowered the monetary value of the merchandises by 40 % . With this the market coat was expected to spread out to over 1 million cardamon workss in topographic point of conventional seedlings. But, this needs careful planning on the logistics towards bringings to the b abys rooms so as to acquire the merchandise finished, merely ready for seting during the season. Furthermore, the procedure of holding regional babys rooms affecting the local husbandmans brings in faster spread of information and besides helps husbandmans to familiarize themselves with the engineering.5. Value Addition. With the alteration in tendencies in the consumer behavior in the developed states the market for fast nutrients is quickly spread outing. Spice in whole or in powdery signifier can non prolong flavour degree in the shelves. This led to extraction of oils and oleoresins from the spices. Ernakulam District has the maximal confined capacity to bring forth oils and oleoresins. Attempts were taken to present assortments of paper, turmeric, etc. , with which spice value instead than give. This lead to self sufficiency in natural stuff supply to this industry. Similar illustrations can be quoted such as banana in attractive carry-home battalions made available to the home makers. This can speed up the production of fruits, within the District, avoiding dependence on other States.Execution Model6. The chart given below shows the engineering assimilation construct. Acerate leaf to state it starts with the client. The key to Nipponese success lies in placing their client and run intoing their outlooks. When this procedure is started, the market demands emerges as chances and challenges.IMPLEMENTING AGENCYADVISORY COMMITTEESBPMC 1AGRICULTURE HORTICULTURE FISHERIES POULTRY ENVIRONMENT HRD2Corporation83 PANCHAYATS ( 3 ) 10 MUNICIPALITIES ( 4 )15 BLOCKS ( 5 ) SCHOOLS COLLEGES RETIRED EXPERTS1. Biotechnology Project monitor Committee2. Asst. Director of Agri/Horti/Fisheries/OHicer-in-charge3. Panchayat President- Monitoring Officer4. Municipality Chairman Monitoring Officer5. Block Development Officer Implementing Officer HRD7. The BPMC takes such chances to the Scientific Advisory Board to measure the technological capablenesss to run into those challen ges. BPMC with the aid of the consultative board assesses the technological position and precedences with technology-off-the shelf and new engineerings to be developed through research attempts. Technology-off-the-shelf will acquire into the pilot works where the production gets commercially scaled up to corroborate cost, quality and bringing. The research precedences can be placed in appropriate research Centres measuring their proficient expertise with the aid of the consultative board. Utmost attention is taken while be aftering the research undertakings with the Centres to tap the bing expertness instead than developing new expertness. Delayed bringing of merchandises can retard growing and advancement by non encashing the chance at the right clip. The merchandise commercialization is envisaged through people s engagement. Thus the execution bureau envisaged is a biotechnology society with an apex body-BPMC. This will consist experts from the assorted Fieldss invariably reexami ning the restraints, accomplishments and prioritizing the same by resetting the yard. In one instance if the production has outstripped the demand, the commission works to speed up the gait of the market development. The commission besides addresses the issues on structural reforms and barriers in commercialization of engineering such as infrastructural development in the airdromes for spoilables, flowers etc. , land and legal issues, while corporate agriculture is initiated to accomplish just monetary value to the green goods. BPMC besides keeps ticker on developing the accomplishment of the manpower in front of industrialization so that the accomplishments are non hampered due to miss of expertness. The thrust countries like agribusiness, gardening are once more monitored by subgroups with the Director of Agriculture or such officer-in-charge. These subgroups will hold representatives from panchayets and muncipalities. The construction suggested is a extremely dynamic system inva riably prioritizing and extinguishing restraints with the individual aim of maximization of consequences.

Ownership Structure, Managerial Behavior and Corporate Value

diary of inembodied finance 11 (2005) 645 660 www. elsevier. com/locate/econbase give function grammatical construction, managerial fashion and bodily prize J. R. Daviesa, David Hillierb,T, Patrick McColganc a University of Strathclyde, UK b University of Leeds, UK c University of Aberdeen, UK Received 21 November 2002 reliable 6 July 2004 Available online 20 April 2005 Abstract The nonlinear coitusship amid embodied economic economic determine and managerial allow for power is well documented. This has been attri neverthelessed to the onset of managerial entrenchment, which cases in a simplification of integrated treasure for increase aims of managerial retentivitys.We propose a new structure for this relationship that accounts for the effect of conflicting managerial incentives, and bring outback(a)(a) and internal disciplinary monitoring appliances. Using this specification as the basis for our analysis, we provide rise that the managerial willpower i n merged value relationship is co-deterministic. This finding is at odds with recent work which tracks that somatic value determines managerial self-will besides non vice-versa. D 2005 Elsevier B. V. All rights reserved.JEL classification G32 Keywords self-possession structure Capital expenditure integrated value Tobins Q 1. Introduction In a trade place without billet problems, integrated managers will choose investitures that exploit the wealth of shargonholders. In practice, competing objectives which be incompatible with the sh atomic number 18holder wealth-maximising image whitethorn alike be pursued. T Corresponding author. Leeds University Business School, University of Leeds, Maurice Keyworth Building Leeds, LS2 9JT, UK. Tel. +44 113 3434359 fax +44 113 3434459. E-mail address d. j. emailprotected c. uk (D. Hillier). 0929-1199/$ see front matter D 2005 Elsevier B. V. All rights reserved. doi10. 1016/j. jcorpfin. 2004. 07. 001 646 J. R. Davies et al. / dia ry of corporal finance 11 (2005) 645660 Following Jensen and Meckling (1976), a bear-sized literature has developed that examines how managerial look impacts upon squ be per rowance. A vibrant strand of this literature concerns the relationship between managerial willpower levels, the direct enthronisation funds decisions made by focus and the inherent value of the stanch, as proxied by Tobins Q ratio. Morck et al. 1988), McConnell and Servaes (1990), and Hermalin and Weisbach (1991) provide secern of a large nonlinear relationship between bodily value and managerial self-possession. Specifically, value increases with managerial holdings for low levels of self-possession. At some level, managers become entrenched in spite of appearance the satisfying resulting in a decrease in firm value. However, whereas Morck et al. (1988) and Hermalin and Weisbach (1991) document further changes in the unified valuemanagerial holdings relationship at high levels of paleness self -possession, McConnell and Servaes (1990) report no such change.Recent work has built upon the findings of Demsetz and Lehn (1985) who beg that levels of managerial monomania will be contumacious endogenously in equilibrium. Moreover, Cho (1998) and Himmelberg et al. (1999) have shed doubt upon the ahead findings of Morck et al. (1988) and McConnell and Servaes (1990) by lookling for the effects of endogeneity and unobservable (to the econometrician) firm characteristics in their analysis. After functionling for the effects of endogeneity in the corporate value managerial holdings relationship, they showed that managerial self-will had little or no effect on corporate value and coronation.Short and Keasey (1999) and Faccio and Lasfer (1999) utilize a cubic specification to position the corporate valuemanagerial holdings relationship and both report a planetary houseificant nonlinear soundal form, exchangeable to Morck et al. (1988), for British companies. However, unco mplete study fully examines the misspecifying impact of endogeneity on their results. In this paper, we propose a new structure to the managerial willpowercorporate value relationship which captures a more complex characterisation of the evolving behavior of managers. We bespeak that at high levels of managerial self-will when alfresco food market civilise becomes neffective, there will be a resurgence of entrenchment behavior. With fairness holdings around 50%, managers will have implicit control of their bon ton, but still do not have objectives completely aligned to remote shareholders. Only at very high levels of managerial holdings are incentives akin to opposite shareholders. When this model is applied to a large specimen of firms incorporated in the UK, managerial ownership is seen to have a authoritative impact on corporate value. This relationship is endogenous, and unvarying with Cho (1998) and Himmelberg et al. (1999), corporate value has a corresponding effe ct on managerial holdings.We excessively find that although ownership levels are continueed by firm level investment, there is no recount of the reverse occurring. In the next section we outline our model of the managerial ownershipcorporate value relationship. We gift empirical results in Section 3 and conclude in Section 4. 2. The model In this section, we propose an alternative structure to the managerial holdingscorporate value relationship and argue that the cubic, or simpler representations, used in earlier J. R. Davies et al. / ledger of Corporate finance 11 (2005) 645660 647 studies1 are unnecessarily repressing and misspecified.The model that is presented here captures further nonlinearities in this relationship at high levels of managerial holdings and has a quintic specification. guidance is faced with both forbid and positive incentives to ensure that they follow objectives which maximise shareholder wealth. The effectiveness of these incentives is potentially a turn of the level of managerial ownership in the firm. We view the propensity of management to maximise shareholder wealth to be a function of three unobserved factors remote market discipline, plain if it is weak, internal controls and crossroad of interests.Moreover, the strength of each factor can be viewed as a function of the level of managerial ownership in the firm. 2 2. 1. Low levels of managerial ownership For low levels of managerial ownership, international discipline and internal controls or incentives will dominate behavior (see Fama, 1980 Hart, 1983 Jensen and Ruback, 1983). Empirically, Morck et al. (1988), McConnell and Servaes (1990) and Hermalin and Weisbach (1991) report results consistent with this behavior for the relationship between managerial holdings and corporate value.However, there is also the possibility that lower levels of ownership within this range have endogenously arisen from performance think requital packages, such as deport options and s tock grants kinda than increased ownership in itself leading to higher(prenominal) Q ratios. 2. 2. Intermediate levels of managerial ownership At mediocre levels of managerial ownership, management interests begin to converge with those of shareholders. However, with great ownership comes greater power in the form of voting rights.Managers whitethorn, at this level of holdings, maximise their personal wealth by dint of increasing perquisites and guaranteeing their employment at the expense of corporate value. In addition, while low managerial ownership levels may have arisen through the vesting of pay plans, it is unlikely that such plans will provide management with a moderate ownership game in the firm. Moreover, even though external market controls are still in place, these and the effect of convergence of interests are not strong enough to align the behavior of management to shareholders.managerial labour markets melt down on the principal that poorly performing 1 See Mor ck et al. (1988), McConnell and Servaes (1990), Hermalin and Weisbach (1991), Cho (1998) and Himmelberg et al. (1999) for US companies and Short and Keasey (1999) and Faccio and Lasfer (1999) for UK companies. 2 For example, since compensation packages such as stock options are a transfer of wealth from shareholders to management, their value will lessen as managerial ownership increases. External market discipline is also a function of managerial ownership.Large shareholdings by aggrandisement management act as a deterrent for takeovers because of the greater efficacy to oppose a hostile bid or drive up premiums to the point where bidders no longstanding view the target ships participation as a positive net present value investment Stulz (1988). Finally, internal controls in the form of monitoring from large shareholders and corporate boards should reduce the scope for managers to diverge greatly from the interests of shareholders. Again, however, such discipline is likely to be inversely related to managerial control Denis et al. (1997). 648 J. R. Davies et al. / ledger of Corporate finance 11 (2005) 645660 anagers can be removed and appropriately disciplined. Studies by Denis et al. (1997) in the US and Dahya et al. (2002) in the UK both find an inverse relation between topmanagement turnover and managerial ownership. This need of discipline provides evidence of a deficiency in incentives for managers to maximise shareholder value at this level of ownership. Franks and Mayer (1996) also report that hostile takeover targets in the UK are not poorly performing firms, which is in contrast to the findings of a disciplinary role for corporate takeovers in the US by Martin and McConnell (1991).In this context, Franks and Mayer (1996) provide significant evidence that takeovers in the UK may not act to remove a self-serving board even when they are performing poorly. This lack of disciplinary control over poorly performing management may gird managements ability to pursue sub-optimal corporate policies at intermediate ownership levels. 2. 3. High levels of managerial ownership (less than 50%) As levels of managerial equity ownership grow, objectives converge further to those of shareholders. At ownership levels, below 50% management do not have jibe control of the firm and external discipline still exists.While perhaps no longer organism subject to any study discipline from external takeover markets, it is likely that even at these levels of ownership, managers are still subject to discipline from external block shareholders. This is disuniteicularly true in the UK, where because of strong informal ties between institutions (Short and Keasey, 1999), a idle regulatory environment concerning the ownership of listed companies (Roe, 1990) and low monitoring costs (Faccio and Lasfer, 1999), institutional activism is stronger than in the US. This view is also consistent with Franks et al. (2001) contention of strong minority protectio n virtues in the UK, whereby large shareholders cannot transact with related companies without the comply of the firms minority shareholders. The UK regulatory framework stands in contrast to US corporate law which limits minorities to seeking redress subsequently the related party transaction has taken place. Combined with monitoring from UK institutions, this may allow external shareholders to impose some form of control on management even at elatively large levels of managerial ownership. 2. 4. High levels of managerial ownership (greater than 50%) At levels above 50% ownership, management has complete control of the company. Although atomistic shareholders are unlikely to have been able to in influence managers at out-of-the- sort(prenominal) lower levels of ownership than this, there is always a possibility that a cartel of blockholders, confederate with minority shareholders rights under UK company law, may be able to mount a challenge to management if they give way to m ake decisions in shareholders best interests.For a more in-depth discussion of the institutional differences and alike(p)ities between the fall in Kingdom and United States, see Short and Keasey (1999) and Faccio and Lasfer (1999). 3 J. R. Davies et al. / journal of Corporate Finance 11 (2005) 645660 649 At greater than 50% managerial ownership, this is no longer likely to be a serious issue to management. Furthermore, with majority ownership, the probability of a hostile takeover effectively becomes zero.The failure of external discipline combined with a lack of blockholder incentives above 50% may result in a decrease in corporate value for a small window of managerial holdings above this level. This nightfall in corporate value is consistent with the theoretical predictions of Stulz (1988). 2. 5. Very high levels of managerial ownership Finally, as managerial shareholdings rise to very high levels, management effectively become sole owners of the company. This would lead to va lue-maximising behavior as predicted by Jensen and Meckling (1976). Consistent with Morck et al. 1988), Short and Keasey (1999) and Faccio and Lasfer (1999) at above a certain level of ownership, corporate managers are faced with such severe pecuniary penalties for failing to maximise the value of their companies that they are agonistic to make decisions which will maximise firm value, regardless of how this affects their private benefits of control. 2. 6. Summary Our characterisation of a passing nonlinear relationship between managerial equity holdings and corporate value is in contrast to earlier studies (Morck et al. , 1988 McConnell and Servaes, 1990 Hermalin and Weisbach, 1991 Cho, 1998 Himmelberg et al. 1999)4, which posit fewer go points in their analysis. There is little theoretical basis on which the several(prenominal)(prenominal) bout points can be determined, and the findings of Kole (1995) suggest that these will be in influenced by the size of the firms in the sample. However, it is expected that the second local maximum will be in the region of 50% managerial ownership reflecting the stage at which management gain integrality control of the company. In the next section, the main tests of our hypotheses will be carried out. 3. Empirical results 3. 1.Description of the information We use information on managerial and external block ownership for 1995 from the MacMillan London Stock rallying Year ledger for 1996 and 1997. The annual provides summary score entropy including a consolidated balance sheet, information on company directors, good information on the companys lawyers, auditors and stockbrokers, principle activities, company history, capital and dividend payments, and industrial sector for the McConnell and Servaes (1990) modelled the corporate valuemanagerial ownership relationship as a quadratic function, which by construction has merely one turning point. 650 J. R. Davies et al. / Journal of Corporate Finance 11 (2005) 645660 vast majority of all quoted companies and securities. 5 We restrict our attention to nonfinancial companies only and require that each firm has complete managerial and external ownership entropy for 1995, which leaves 802 industrial companies in our sample. 6 Data on capital expenditures, score assets sedulous, after tax profits, dispraise, supplement, equity market set, and seek and development costs are collected from Datastream. We count Tobins Q ratio (our proxy for corporate value) using the formula below Q?MVEQ ? PREF ? DEBT BV ASSETS ? 1? where MVEQ=the year-end market value of the firms mutual stock PREF=the yearend password value of the firmTs preference shares ( preferred stock) DEBT=the year-end book value of the firmTs total debt and BV ASSETS=the total assets employed by the firm, which is metrical as total assets deduction period liabilities. Our measure is consistent with the modified adaption of the formula as used by Chung and Pruitt (1994) who find that 96. 6% of the variability in the popular Lindenberg and Ross (1981) algorithmic rule of Tobins Q is explained by their estimation.Our method also avoids the data availability problems which arise from using the more austere algorithms proposed by Lindenberg and Ross (1981) and Lewellen and Badrinath (1997) in order to compute the replacement cost of assets. We use book values of preferred stock and long-term debt, rather than the market values proposed by Lindenberg and Ross (1981) and Lewellen and Badrinath (1997). In the UK, there is a far less active market for the trading of corporate debt than that which exists in the US, forcing us to rely on book values for these variants.In a final stratification of our sample, we mitigate the problem of potential outliers and trim 25 firms with the largest and smallest Tobins Q measure, leaving a final sample of 752 firms. 7 shelve 1 presents descriptive statistics for our sample data. The mean managerial ownership stake of all board members is 13. 02%, which is similar to comparable US studies, but slightly lower than Faccio and Lasfer (1999) who report mean ownership of 16. 7%. Tobins Q is slightly higher than that account for related US work with a mean value of 1. 96. The standard deviation of Tobins Q is 1. 21, which is also greater than some other studies.However, it is substantially less than the mean of 2. 47 account by Doukas et al. (2002) and is relatively similar to the mean value of 1. 86 that Short and Keasey (1999) report for their market military rating ratio. 8 The mean blockholder ownership is 37. 34% and is on a par with that reported for US firms by McConnell and Servaes (1990) (32. 4%) and 34. 57% reported by Faccio and Lasfer (1999) for UK firms. The full range of firm sizes is included in the sample with the 5 To establish the reliableness of the summary ownership data, we carried out a correlation analysis of a subsample of 422 firms from he original data set of 802 companies (52. 62%) for which we were able to obtain company annual reports. The yearbook data and company accounts data exhibited a correlation of 0. 90, with a pvalue of 0. 00. We also establish the robustness of our data by re-estimating the model using data for 1997. This result is discussed later in this section. 6 Recently listed, merged or acquired firms are not included. 7 This is a larger sample than that used by Morck et al. (1988)371 firms, Cho (1998)326 firms and Himmelberg et al. (1999)maximum 427 firms in any 1 year. Measured as the market value of equity divided by the book value of equity, minus any intangibles. J. R. Davies et al. / Journal of Corporate Finance 11 (2005) 645660 sidestep 1 Descriptive statistics uncertain way ownership Blockholder ownership Largest stakeholder Capital expenditures Total assets employed After tax profits less depreciation/assets employed Debt/assets employed Market value of equity Research and development Tobins Q Mean 13. 02% 37. 34% 18. 8 2% 21,221 255,642 0. 1425 0. 1411 335 2918 1. 9647 S. D. 18. 06% 23. 57% 21. 64% 75,317 1,583,274 0. 4763 0. 252 1399 44,108 1. 2092 Minimum 0. 00% 0. 00% 0. 00% 7 268 A10. 977 0. 0000 0. 68 0 0. 4502 651 Maximum 79. 90% 100. 00% 100. 00% 1,024,200 37,774,000 3. 4207 4. 8358 26,224 1,198,988 7. 0997 managerial ownership data measures the total level of holdings held by company management that are greater than 0. 5% of a companys equity. Blockholder data measures the total level of holdings by outside blockholders that are greater than 3% of a companys equity. Largest stakeholder is the largest single outside blockholder that holds at least 3% of companys outstanding equity.Capital expenditures (thousands), total assets employed (thousands), after tax profits, depreciation, leverage, equity market values (millions) and research and development costs (thousands) are collected from Datastream. Tobins Q is measured as the ratio of the market value of equity and book values of debt and p referred equity to the book value of assets in the firm minus current liabilities. Shareholdings data is taken from the London Stock Exchange Yearbook for 1996 and 1997. All data are for industrial companies quoted on the London Stock Exchange in 1995. mallest company having an equity market capitalisation of o680,000 and the largest companys equity valued at approximately o26 billion. The mean market capitalization of firms in the sample is o335 million. Table 2 provides the distribution of sample statistics grouped by managerial ownership. A very large proportion of the sample (62%) have managerial ownership levels less than or jibe to 10%. However, a large fraction of companies (11%) also in the sample had boards Table 2 partition of sample by managerial ownership Manager level Ownership Number of firms 464 87 75 41 34 26 21 4 Blockholder ownership, % 43. 34. 5 34. 4 24. 0 22. 7 13. 0 12. 7 5. 8 Tobins Q 1. 952 2. 033 1. 736 2. 109 2. 113 2. 257 1. 933 1. 808 Total assets emplo yed 393,861 44,093 26,186 34,322 35,864 28,190 14,234 10,127 Capital expenditures/ assets employed 0. 106 0. 161 0. 124 0. 117 0. 114 0. 100 0. 099 0. 114 Liquidity 0. one hundred thirty 0. 129 0. 157 0. 194 0. 194 0. 177 0. 169 0. 239 0VMOb10% 10VMOb20% 20VMOb30% 30VMOb40% 40VMOb50% 50VMOb60% 60VMOb70% 70VMOb100% Managerial ownership (MO) data measures the total level of holdings held by company management that are greater than 0. 5% of a companys equity.Blockholder ownership measures the total level of holdings by outside blockholders that are greater than 3% of a companys equity. Capital expenditure (thousands), total assets employed (thousands), after tax profits and equity market values (millions) are collected from Datastream. Liquidity is measured as cashflow divided by total assets employed. Tobins Q is measured as the ratio of the market value of equity and book values of debt and preferred equity to the book value of assets in the firm minus current liabilities. Sharehold ings data is taken from the London Stock Exchange Yearbook for 1996 and 1997.All data are for industrial companies quoted on the London Stock Exchange in 1995. 652 J. R. Davies et al. / Journal of Corporate Finance 11 (2005) 645660 Table 3 Regression results for Tobins Q on managerial ownership Variable Coefficient t-Statistic Adj. R 2 block off 1. 85 28. 14 0. 017 MO 0. 12 3. 23 MO2 A0. 013 A3. 08 F MO3 4. 63A10 2. 82 2. 651 A4 MO4 A6. 73A10 A2. 53 A6 MO5 3. 36A10A8 2. 24 The hobby equation was portendd using data for 752 firms listed on the London Stock Exchange during 1995. Q ? a0 ? a1 MO ? a2 MO2 ? a3 MO3 ? a4 MO4 ? a5 MO5 ? e where Q is Tobins Q and MO is managerial ownership.Ownership data is taken from the London Stock Exchange Yearbook and Tobins Q is calculated from Datastream. which owned at least 40% of all outstanding equity. As would be expected, outside blockholder ownership decreases with managerial ownership. At managerial ownership levels of 30%, blockholder owne rship is slightly less at 24%. It is probable that external discipline, as provided by blockholders, would still be strong at these levels of managerial holdings, particularly where informal coalitions among blockholders are more prominent (Short and Keasey, 1999).At higher levels of managerial holdings, blockholder ownership decreases sapiently leading to a collapse in the power of blockholders. Managerial ownership is a decreasing function of company size, which is consistent with Demsetz and Lehn (1985). Although firm sizes in the UK are considerably smaller than US firms, the ratios in Table 2 are similar to summary statistics provided in Morck et al. (1988), McConnell and Servaes (1990), Cho (1998) and Himmelberg et al. (1999). Table 2 also illustrates the nonlinear relationship between Tobins Q and managerial holdings.Visual inspection indicates two maximum points in the region of 10% to 20% and 50% to 60%, respectively. The convergence of managerial interests to those of sha reholders at very high levels of ownership is not apparent at this stage because of the small number of companies with managerial holdings above 70%. However, the statistics for all other groupings are consistent with our theoretical motivation. 3. 2. Estimation of ownership breakpoints In order to model the Tobins Qmanagerial ownership (MO) function as having two maximum and two minimum turning points, we specify a quintic function, as follows Q ? 0 ? a1 MO ? a2 MO2 ? a3 MO3 ? a4 MO4 ? a5 MO5 ? e ? 2? For the nonlinear relationship discussed in Section 2 to be valid, the coefficients in Eq. (2) must have the following signs a 0N0 a 1N0 a 2b0 a 3N0 a 4b0 a 5N0. The estimated values of the coefficients in Eq. (2) are habituated in Table 3. 9 The intercept coefficient, which is an estimate of Tobins Q in firms with no managerial holdings, is 1. 85. Each slope coefficient is of the correct sign and statistically significant at the 5% level. Although the It is clear that Tobins Q will be in influenced by more than and managerial ownership.However, the objective of this paper is to investigate whether the standard quadratic and cubic specifications used in foregoing studies are too simplistic. To maintain parsimony, we therefore omit other factors from this specific model. Other relevant factors are incorporated into the analysis in a later table. 9 J. R. Davies et al. / Journal of Corporate Finance 11 (2005) 645660 653 Estimated Relationship between Tobins Q and Managerial Ownership 2. 40 2. 20 2. 00 1. 80 1. 60 1. 40 1. 20 0 0. 1 0. 2 0. 3 0. 4 0. 5 0. 6 0. 7 0. 8 0. 9 Tobins QInsider Ownership Fig. 1. Estimated relationship between Tobins Q and Managerial Ownership. Tobins Q was modelled as a quintic function of insider ownership using ordinary least squares relapsing. The estimated regression line is Q=1. 85+0. 12IOA0. 013OI2+4. 63A10A4IO3A6. 73A10A6IO4+3. 36A10A8IO5. adjusted R 2 is low, it is similar to that found in comparable US studies. The use of this model as a basis to estimate managerial ownership turning points leads to four critical values 7. 01%, 26. 0%, 51. 4%, 75. 7% and is illustrated in Fig. 1.To establish the robustness of our regression model, the spline approach as applied by Morck et al. (1988), Cho (1998) and Himmelberg et al. (1999) to estimate breakpoints was carried out using our generated turning points. Table 4 presents the coefficients resulting from the piecewise linear regression. Similar to Table 3, each coefficient has the expected sign and all but one variable is statistically significant at the 5% level. The only variable that is not significant, MOover 76% , has the correct sign. The probable cause for the lack of import is the small number of firms in this managerial ownership grouping.An examination of these results suggests that Tobins Q increases in firms for managerial ownership levels up to 7% and consequently declines to ownership levels of 26%. This is almost identical to the turning points in Morck et al. (1988) and Himmelberg et al. (1999) (5% and 25%, respectively) and is comparable to Cho (1998), who uses breakpoints of 7% and 38%. However, it differs from the UK studies of Short and Keasey (1999) and Faccio and Lasfer (1999) who each reports two turning points of 12. 99% and 41. 99%, and 19. 68% and 54. 12%, respectively.Earlier studies limit the turning points to two but in our extension, it is clear that there are another two turning points at untold higher levels of managerial ownership. It also appears that market discipline has an influence on managerial objectives up to the point where the board takes complete control (51%). Tobins Q then decreases until ownership levels reach 76%, after which Q increases. Denis and Sarin (1999) argue that cross-sectional studies may be subject to bias, whereby they fail to account for events with potentially large valuation consequences. 10 10Examples of such events may include receiving a takeover bid, top management tur nover, etc. 654 J. R. Davies et al. / Journal of Corporate Finance 11 (2005) 645660 Table 4 Spline regression results for Tobins Q on managerial ownership Variable Coefficient t-Statistic Adj. R 2 Intercept 1. 854 28. 38 0. 012 MOup 0. 056 2. 93 to 7% MO7% to 26% MO26% 0. 0187 2. 57 2. 769 to 51% MO51% A0. 053 A1. 99 to 76% MOover 0. 624 1. 12 76% A0. 020 A2. 62 F The following equation was estimated using data for 752 firms listed on the London Stock Exchange during 1995. Q ? a0 ? a1 MOup to 7% ? a2 MO7% to 26% a3 MO26% to 51% ? a4 MO51%to 76% ? a5 MOover 76% ?e where Q is Tobins Q and MOup to 7%=managerial ownership if managerial ownership b7%, =7% if managerial ownershipN7%. MO7% to 26%=0 if managerial ownership b7%, =managerial ownership minus 7% if 7%bmanagerial ownershipb26%, =26% if managerial ownershipN26%. MO26% to 51%=0 if managerial ownershipb26%, =managerial ownership minus 26% if 26%bmanagerial ownershipb51%, =51% if managerial ownershipN51%. MO51% to 76%=0 if manageria l ownership b51%, =managerial ownership minus 51% if 51%bmanagerial ownershipb76%, =76% if managerial ownership N26%.MOover 76%=0 if managerial ownershipb76%, =managerial ownership minus 76% if managerial ownershipN76%. Ownership data is taken from the London Stock Exchange Yearbook and Tobins Q is calculated from Datastream. As a further test of robustness, we carried out the quintic analysis for managerial ownership and Tobins Q for the same sample of available firms in 1997. 11 Again, each coefficient was significant with the correct signs and the turning points from the estimated model were relatively stable at 7. 9%, 26. 5%, 55. 2% and 86. 2%. . 3. Endogeneity of managerial equity ownership, investment and corporate value To analyse the effects of endogeneity in the managerial ownership, investment and corporate value relationship, we follow Cho (1998) and carry out a co-occurrent equations analysis using two-stage least squares. Cho (1998) and Himmelberg et al. (1999) showed that once endogeneity was controlled, the perceive impact of managerial ownership on corporate value disappeared. Moreover, corporate value was found to positively affect levels of managerial ownership.It is possible that if the model specification employed by these studies is wrong, what appears to be a lack of statistical significance in the endogenous variables in the simultaneous equations analysis may actually be referable to errors in variables arising from the intermediate regressions. We re-run the two-stage least squares analysis of Cho (1998) using our more complex specification. 12 The control variables in our regression are the same as in Cho (1998). Namely, managerial ownership, investment and corporate value are Some firms fell out of the sample because of mergers, delisting, and being taken over.Cho (1998) also attempts to control for specification error by re-estimating his simultaneous regression analysis using managerial ownership as a linear variable and again f inds no relationship between managerial ownership and corporate value. However, if then there is a nonlinear relationship between ownership and corporate value, such an approach would fail to capture this. 12 11 J. R. Davies et al. / Journal of Corporate Finance 11 (2005) 645660 655 defined to be endogenously determined by each other as well as some additional relevant exogenous variables. That is Managerial Ownership ? ? market value of firm0s common equity corporate value investment unpredictability of earnings liquidity industry? Corporate Value ? g? managerial ownership investment leverage asset size industry block ownership largest stakeholder? enthronisation ? h? managerial ownership corporate value volatility of earnings liquidity industry? For comparability, we define each of the above variables as in Cho (1998). For each company, industry dummy variables are set equal to one for each pecuniary quantify persistence Classification (FTIC) grouping that sample firms lie within, and zero otherwise.In addition to the variables used by Cho (1998), we include blockholder ownership and largest stakeholder in the corporate value regressions to reflect the potential impact of blockholder discipline in the UK and the role of a founding or dominant individual on corporate value. All accounting and market variables are taken at the financial year-end from Datastream. In Table 5, we report results from the simultaneous equations analysis. Taking the managerial ownership regression first, all variables with the exception of investment have coefficients with the expected sign.Managerial ownership is negatively related to the market value of equity, which reflects the fact that wealth constraints and risk-aversion will prevent managers from holding substantial stakes in large firms. Firm level liquidity is shown to be positively related to managerial ownership, which is a stronger result than Cho (1998) who reported no significance for this variable. Importantly , Tobins Q is found to be significant and positively related to the level of managerial ownership. This is consistent with Cho (1998) but is opposed to Demsetz and Villalonga (2001), who find the opposite effect.This result suggests that managers tend to hold larger stakes in firms that are successful or have higher corporate value. This may also be indicative of successful managers benefiting from equity-related compensation policies. The investment variable, which has a negative impact on managerial ownership is surprising as theory predicts that firm level investment will be positively related to managerial ownership. Himmelberg et al. (1999) contend that firms with high investment spending will have high managerial ownership to alleviate the monitoring problem caused by discretionary managerial spending.However, Jensen (1986) argued that firms may overinvest as a result of an earnings retention conflict, rather than underinvest as Jensen and Mecklings (1976) moral hazard theory would predict. When a firm is in this situation, managers may be able to maximise their size-related compensation by overinvesting, but are aware that this may ultimately reduce the value of their shareholdings. Although tentative, this could in part explain the negative relation between investment and ownership. Cho (1998) also finds a negative (but unimportant) coefficient on the investment variable using both capital and research and development expenditures. 56 J. R. Davies et al. / Journal of Corporate Finance 11 (2005) 645660 Table 5 Simultaneous equations analysis of managerial ownership, corporate value and investment Variable MVEQ Tobins Q Volatility Liquidity Investment supplement Asset size Largest stakeholder Blockholder ownership MO MO2 MO3 MO4 MO5 Industry dummies Adj. R 2 F Managerial ownership A1. 8A10 (A3. 74) 0. 127 (4. 63) A1. 0A10A6 (A0. 74) 0. 035 (2. 24) A1. 314 (A2. 67) A5 Corporate value Investment 0. 073 (2. 35) 3. 89A10A6 (A2. 86) 0. 013 (1. 01) Yes 0. 04 5 8. 014 5. 136 (2. 23) 1. 088 (4. 36) 3. 33A10A8 (1. 17) A0. 20 (A0. 06) A0. 837 (A2. 60) 1. 588 (3. 07) A0. 395 (A2. 22) 0. 037 (1. 64) A0. 001 (A1. 14) 1. 9A10A5 (0. 76) Yes 0. 033 3. 497 A0. 035 (A0. 46) 0. 018 (0. 72) A0. 003 (A0. 92) 1. 72A10A4 (1. 03) A3. 12A10A7 (A1. 07) Yes 0. 009 2. 497 Results from a simultaneous equations analysis of managerial ownership, corporate value and investment for 752 firms, using the two-stage least squares method to estimate the following equations Managerial Ownership ? f ? market value of firm0s common equity corporate value investment volatility of earnings liquidity industry? CorporateValue ? g? anagerial ownership investment financial leverage asset size industry block ownership largest stakeholder? Investment ? h? managerial ownership corporate value volatility of earnings liquidity industry? In the above equations, managerial ownership measures the total level of holdings held by company management that are greater than 0. 5% of a compa nys equity. Blockholder data measures the total level of holdings by outside blockholders that are greater than 3% of a companys equity. Largest stakeholder is the largest single outside blockholder that holds at least 3% of companys outstanding equity.Investment is defined as capital expenditure divided by total assets employed, leverage is the ratio of total debt to total assets employed and liquidity is measured as cashflow divided by total assets employed. Capital expenditure, total assets employed, after tax profits, depreciation, leverage, equity market values and profit volatilities are collected from Datastream. Tobins Q is measured as the ratio of the market value of equity and book values of debt and preferred equity to the book value of assets in the firm minus current liabilities.Shareholdings data is taken from the London Stock Exchange Yearbook for 1996 and 1997. All data are for industrial companies quoted on the London Stock Exchange in 1995. t-Statistics are in pare nthesis. The estimated coefficients from the corporate value regression are given in the second mainstay of Table 5. Corporate value is shown to be positively related to investment and leverage. While the investment coefficient is as expected, the sign of the leverage variable requires more discussion. Morck et al. 1988) find that leverage has a negative but insignificant impact on corporate value and attribute this to the possibility of managers in highly levered firms holding a higher than average level of ownership. However consistent with our results, McConnell and Servaes (1990) report a positive significant coefficient for leverage. Leverage can have various effects on firm value. The notion that high debt levels lead to greater corporate value has been argued by Modigliani and Miller (1963) with respect J. R. Davies et al. / Journal of Corporate Finance 11 (2005) 645660 57 to valuable tax shields, Ross (1977) and Myers (1977) with respect to a signalling hypothesis and Jens ens (1986) free cashflow hypothesis. Ultimately, leverage is one way of imposing external discipline on management and if it is effective, will lead to increased corporate value. Alternatively, Demsetz and Villalonga (2001) depict a negative association between leverage and firm value as being due to relative inflation between the current time period and the earlier time period where companies had issued much of their debt.We view the most important result from the corporate value regression as being the significance of the managerial ownership variables. Our results indicate that although managerial ownership levels are determined by corporate value, corporate value itself is determined in part by managerial ownership. This finding is at odds with Cho (1998) and Himmelberg et al. (1999) but consistent with the classical view of Jensen and Meckling (1976) and empirical work by Morck et al. (1988) and McConnell and Servaes (1990). An fire result is that blockholder ownership is sho wn to negatively impact Tobins Q.This result is consistent with Faccio and Lasfer (1999, 2000). McConnell and Servaes (1990) suggest that this could be due to a conflict of interests, which results from blockholders being forced into aligning themselves with managers so as not to jeopardize their other dealings with the firm. Alternatively, the negative coefficient may be explained by the strategic alignment hypothesis, which argues that blockholders and managers find it mutually beneficial to cooperate with each other. Finally, such findings may be consistent with the arguments of Burkart et al. 1997) in that too much block ownership will also constrain management and reduce their ability to take value-maximising investment decisions. The investment regression coefficients presented in column three of Table 5 show a significant positive effect of corporate value on investment and a negative effect of profit volatility on investment. The finding that corporate value has a positive effect on investment is consistent with the arguments of Cho (1998) that highly valued firms will have large investment opportunities. Also, firms with variable earnings will be reluctant to invest if future income is uncertain.Managerial ownership is found to have no impact on firm level investment. However, this may reflect optimality in that investment policy may be one way in which managers affect value, but not the only means. Ultimately we view our findings of a causal relation between ownership and firm value as being of greater significance than the lack of a relation between ownership and investment. These results are consistent with Cho (1998) but slightly stronger, in that volatility of earnings is significant in our regressions but insignificant in Cho (1998). . Conclusions Debate as to the relationship between corporate value and managerial ownership in the US is still unresolved. Studies such as Morck et al. (1988), McConnell and Servaes (1990), and Hermalin and Weisb ach (1991) document a nonlinear relation between these two variables. More recent work by Cho (1998), Himmelberg et al. (1999), and Demsetz and Villalonga (2001) shows that when controlling for endogeneity, managerial ownership is determined by corporate value but not vice-versa. 658 J. R. Davies et al. Journal of Corporate Finance 11 (2005) 645660 We argue that even accepting that corporate value and managerial ownership are endogenously related to each other, misspecification of the managerial holdingcorporate value relationship may lead to spurious conclusions concerning the direction of causality. Applying a quintic structure, we present results which suggest that the correct form of this relationship is a double humped curve. This is in contrast to other studies that have assumed a cubic or quadratic specification and by construction only one hump.The second hump or local maximum is attributed to a collapse in external market discipline at or around the point where managers tak e overall control of their firm. At this point, which is around 50% ownership, the management is not sufficiently akin to owners but have sufficient power to disregard any form of external monitoring or discipline. This has a detrimental affect on corporate value for a short window of managerial holdings. At high levels of managerial ownership, managers are effectively majority owners of their firm leading to a convergence of interests with other outside shareholders.Utilizing the quintic specification for managerial ownership, we show that even when controlling for endogeneity, not only is corporate value a determinant of managerial ownership but managerial ownership is also a determinant of corporate value. This finding is consistent with the classical work of Jensen and Meckling (1976), as well as the early empirical work of Morck et al. (1988) and McConnell and Servaes (1990) who do not control for endogeneity in their analysis of corporate value and managerial ownership.We beli eve our analysis to have several important contributions to the literature on the relationship between managerial ownership and corporate value. First, our quintic specification extends introductory work in this area and successfully captures the complex nonlinear relationship between corporate value and managerial ownership. Second, by analysing a completely different market which is similar in structure to the United States, we strengthen the power and insights gained from earlier comparable US studies. Third, we provide evidence that corporate value, firm level investment and managerial holdings are interdependent with each other.This has implications for the debate on the effectiveness of compensation policies involving stock options for top managers. Moreover, our findings suggest that some levels of managerial ownership may not be beneficial to outside shareholders even when these levels are high. At the very least, this paper has served to add to the debate concerning the im portance of managerial ownership on corporate value by providing evidence that even controlling for endogenous effects, managerial ownership and stock compensation schemes do have a significant influence on corporate value.Our research has provided an initial step towards a more accurate characterisation of the corporate valuemanagerial ownership relationship. While we do not posit that our specification can be applied to every given data set, we argue that previous research may be misspecified where it has failed to fully explore alternative specifications of the managerial ownershipcorporate value relationship.Future work in this area may focus on other structural forms, which more effectively reflect the interdependence of managerial ownership and corporate prospects. The nonlinear endogenous impact of blockholders on corporate value and managerial ownership would also provide interesting insights on the external discipline that is faced by firm managers and the impact this has o n corporate value. J. R. 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